Consider the Basic AD/AS Model

question 52

Multiple Choice

Consider the basic AD/AS model. If major labour unions succeed in increasing wages across the economy, the AS curve will shift

• A)upward (to the left), increasing the price level.
• B)downward (to the right)and then return immediately to its original position.
• C)downward (to the right), reducing the price level.
• D)upward (to the left)and then return immediately to its original position.
• E)none of the above -- there will no effect on the AS curve.

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Definitions:

Brain Stem

The part of the brain connecting the spinal cord with the forebrain and cerebrum, responsible for regulating basic life functions such as breathing, heart rate, and sleep cycles.

Automatic Functions

Bodily processes or actions that occur without conscious thought, such as breathing, heart rate, and digestion.

Brain Stem

The part of the brain connecting the spinal cord with the forebrain and cerebrum, controlling vital functions such as breathing and heart rate.

Base of the Skull

The inferior portion of the skull upon which the brain rests, consisting of several bones that include the occipital, sphenoid, and parts of the temporal bones.