Multiple Choice
How will a steeper short-run aggregate supply curve affect equilibrium output?
A) The impact of a shift in aggregate demand on equilibrium output will be smaller.
B) The value of the spending multiplier will be larger, and will thus have a greater impact on equilibrium output.
C) The impact of a shift in aggregate demand on equilibrium output will be larger.
D) A smaller change in government spending will be needed to achieve the desired change in equilibrium output.
Correct Answer:
Verified
Correct Answer:
Verified
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