Multiple Choice
An aggregate demand shock will have a large effect on real GDP and a small effect on the price level when
A) the AS curve is steep.
B) the AD curve intersects the AS curve on the downward-sloping portion of the AS curve.
C) the AS curve is close to horizontal.
D) the AS curve is vertical.
E) the AD curve is steep.
Correct Answer:
Verified
Correct Answer:
Verified
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