Multiple Choice
A flatter IS curve implies that the aggregate demand curve will be
A) steeper and the k1 multiplier becomes larger.
B) flatter and the k1 multiplier becomes smaller.
C) unaffected and the k1 multiplier becomes smaller.
D) vertical and the k1 multiplier becomes smaller.
Correct Answer:

Verified
Correct Answer:
Verified
Q121: If money demand relative to the level
Q122: When the nominal wage rate rises by
Q123: A single aggregate demand curve records how
Q124: A rise in the nominal money supply
Q125: In the classical model,flexible prices and wages
Q127: Falling prices tend to redistribute income from
Q128: The redistribution effect refers to the situation
Q129: The labor supply curve may be shifted
Q130: The combination of the Keynes,Pigou,expectations,and redistribution effects
Q131: John Maynard Keynes revolutionized macroeconomics with the