Consider the Basic AD/AS Model

question 69

Multiple Choice

Consider the basic AD/AS model. If there is a decrease in the cost of non- labour inputs to production, the result will be to

• A)shift the AS curve to the left.
• B)shift the AS curve to the right.
• C)shift the AD curve to the right.
• D)shift the AD curve to the left.
• E)cause a movement to the left along the AS curve.

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Definitions:

Bartolomeo Vanzetti

An Italian-American anarchist, who was controversially convicted and executed for murder, sparking worldwide protests in the early 20th century.

Arsène Pujo

A Congressman from Louisiana who led the Pujo Committee during its investigation of the "money trust," exposing the control of America's money and credit by a few financiers in the early 20th century.

Wall Street

The financial district of New York City, often used metonymically to refer to the financial markets and investment community in the United States.

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The cost of purchasing a share of a company's stock, determined by market factors including supply and demand, company performance, and external economic conditions.