Multiple Choice
Because increases in the price level reduce planned aggregate expenditure and short-run equilibrium output,
A) the short-run aggregate supply line is horizontal.
B) the short-run aggregate supply line is downward-sloping.
C) the aggregate demand curve is horizontal.
D) the aggregate demand curve is downward-sloping.
E) the aggregate demand curve is upward-sloping.
Correct Answer:

Verified
Correct Answer:
Verified
Q124: According to the AD-AS model,the short-run impact
Q125: The negative slope of the short-run Phillips
Q126: A rise in the price level<br>A) increases
Q127: The AD-AS model predicts that a negative
Q128: An SRAS curve would be _ if
Q129: In short-run equilibrium in the AD-AS model,output
Q131: If the SRAS curve is positively sloped,then
Q132: The AD-AS model in the diagram above
Q133: Consider an economy initially at long-run equilibrium
Q134: The primary focus of monetary policy in