Consider the AD/AS Model

question 13

Multiple Choice

Consider the AD/AS model.Suppose there is an increase in autonomous desired consumption at a given price level.The result is

• A)the AE curve shifts downward and the AD curve shifts to the left.
• B)the AE curve shifts downward and the AD curve shifts to the right.
• C)the AE curve shifts upward and the AD curve shifts to the left.
• D)the AE curve shifts upward and the AD curve shifts to the right.
• E)no change in either the AE or the AD curve.

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Definitions:

Industrial Development

The process of industrialization whereby an economy is transformed from primarily agricultural to one based on the manufacturing of goods. Individual manual labor is often replaced by mechanized mass production.

Fugitive Slaves

Escaped slaves from Southern plantations seeking freedom in the North or Canada especially during the 19th century before the abolition of slavery.

Industrialized

Refers to the process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods. Individual manual labor is often replaced by mechanized mass production.

Literacy Rates

Literacy rates indicate the percentage of people in a specific age group who can read and write within a particular population.