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Aggregate Demand (AD)shocks Have a Smaller Effect on Real GDP

Question 95

Multiple Choice

Aggregate demand (AD) shocks have a smaller effect on real GDP and a larger effect on the price level


A) the steeper the AS curve.
B) on the downward-sloping portion of the AS curve.
C) the flatter the AS curve.
D) on the upward-sloping portion of the AS curve.
E) if the AD curve is flatter.

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