Under Which of the Following Conditions Will a Change in Government

Multiple Choice

Under which of the following conditions will a change in government purchases have the greatest effect on the economy in the short run?

A) The aggregate demand curve is relatively flat.
B) The aggregate demand curve is relatively steep.
C) The short-run aggregate supply curve is relatively flat.
D) The aggregate demand curve is vertical.
E) The short-run aggregate supply curve is vertical.