-If Aggregate Demand Shifts from AD1 to AD2

question 59

Multiple Choice

-If aggregate demand shifts from AD1 to AD2,

• A)both output and the price level will rise.
• B)output will rise and the price level will fall.
• C)output will rise and the price level will remain the same.
• D)both output and the price level will fall.
• E)output will fall and the price level will risE.

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Definitions:

Pay-for-Knowledge

A compensation strategy that rewards employees for acquiring and utilizing additional skills or knowledge that contribute to their job performance and organizational success.

Job Evaluation

The process of determining the relative value and importance of jobs within an organization to establish fair compensation levels.

Base Pay

The initial rate of compensation an employee receives, not including overtime, bonuses, or other additional payments.

Output

The amount of product or work produced by a company, employee, or process within a specific period.