Consider the Basic AD/AS Model with an Upward-Sloping AS Curve

question 84

Multiple Choice

Consider the basic AD/AS model with an upward-sloping AS curve.A positive aggregate demand shock will initially cause

• A)a decrease in the price level.
• B)the equilibrium point to move rightward along the AS curve.
• C)a movement along the AD curve to the right.
• D)a shift to the right in the AS curve.
• E)the unemployment rate to remain constant.

---

Definitions:

European Community

An economic and political union established by six European countries in 1957, which expanded and evolved into what is now the European Union (EU), aimed at fostering economic cooperation and integration among its members.

Predecessor

An entity or person who held a position or role before the current holder.

Sherman Act

A landmark federal statute in the antitrust law of the United States, passed in 1890, that outlaws monopolistic business practices.

U.S. Corporations

Entities that are incorporated under the laws of a particular state in the United States, distinguished by having legal identities separate from their owners.