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:

Responsibility Accounting System

A system of accounting that involves assigning revenues and costs to the individuals or departments that are directly responsible for them.

Expenses

The money spent or costs incurred in an entity's efforts to generate revenue, representing the cost of doing business.

Managers

Individuals responsible for planning, directing, and overseeing the operations and fiscal health of a business unit or department.

Balanced Scorecard

A management and planning system designed to align an organization’s activities with its vision and strategy, enhance communication within and outside the organization, and track the organization's performance in comparison to its strategic objectives.