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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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