With a Steep Short- Run Aggregate Supply Curve

Multiple Choice

With a steep short- run aggregate supply curve,

A) an increase in taxes that does not change potential GDP will not decrease real GDP by much.
B) there is a large change in real GDP whenever the price level rises.
C) fiscal policy will be an effective tool to reduce unemployment without raising prices too much.
D) an increase in government expenditure will not have an impact on the price level.