Indicate the likely effect of a wide-reaching increase in wages paid to workers on the AD-AS model.Multiple choice question.Short-run aggregate supply decreases and aggregate supply increasesAggregate demand decreases and aggregate supply increaseAggregate supply increasesAggregate supply decreases

According to the AD-AS (Aggregate Demand-Aggregate Supply) Model, which of the following statements is true?A.A) An increase in government spending will always result in higher inflation and output in the short run.B.A shift to the left of the short-run aggregate supply curve will lead to higher long-run economic growth.C.An increase in aggregate demand will only affect the price level in the long run, not in the short run.D.A decrease in the money supply will shift the aggregate demand curve to the right.

In the AS-AD model presented in lectures, the money wage rate is _________ along the Short-Run Aggregate Supply (SAS) curve and a change in the money wage rate causes a __________ of the SAS curve

In the AD-AS (Aggregate Demand - Aggregate Supply) model, assume the economy is initially at a long-run equilibrium. Suddenly, a major technological breakthrough occurs, leading to higher productivity across industries. Which of the following is the most likely immediate result in the AD-AS model?A.Aggregate demand (AD) shifts to the right.B.Aggregate supply (AS) shifts to the right.C.Aggregate demand (AD) shifts to the left.D.Aggregate supply (AS) shifts to the left.

In the AD-AS model, the leftward shift in the aggregate supply curve may be due to (    ).A.Otherwise unchanged and monetary wage increase.B.All other things being equal, the price of raw materials has risen.C.Other things being equal, labour productivity declines.D.All of the above are possible.

In the AD-AS model, which of the following events would most likely shift the Aggregate Demand (AD) curve to the right?A.An increase in consumer confidence. B.A. An increase in taxes. C. B. A decrease in government spending.D.D. An increase in the price level.