Consider the Basic AD/AS Model

question 125

Multiple Choice

Consider the basic AD/AS model.Suppose that high-school graduates have better computing skills than did graduates in the past,resulting in an increase in average labour productivity.This change will

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

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Definitions:

Periodic Pension Expense

The total expense recognized in a period related to an organization’s pension plan.

Funded Status

The financial condition of a pension or other post-employment benefit plan, calculated as the difference between plan assets and obligations.

Defined Contribution Plan

A retirement plan in which the employer, employee, or both make contributions on a regular basis, but the final amount received by the employee depends on the plan's investment performance.