Consider the Basic AD/AS Macro Model, Initially in a Long-

question 35

Multiple Choice

Consider the basic AD/AS macro model, initially in a long- run equilibrium. A positive AS shock will the price level and output in the short run. In the long run, the price level will and output .

• A)increase; increase; return to its initial level; will be restored to potential output
• B)increase; increase; decrease; will be restored to potential output
• C)decrease; increase; decrease further; will be restored to potential output
• D)decrease; decrease; decrease further; will decrease further
• E)decrease; increase; return to its initial level; will be restored to potential output

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Definitions:

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental enhancements over time.

Certainty

The state of being certain or confident in something, without any doubt.

Managers

Individuals in an organization responsible for directing and controlling the work and performance of other people or teams, to achieve the company's goals.

Organic Organizational Model

A flexible, adaptive organizational structure characterized by less formalization, broad job descriptions, and a decentralized decision-making process.