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If the Pigou Effect Characterizes the Economy Then the Slope

Question 29

Multiple Choice

If the Pigou effect characterizes the economy then the slope


A) of the aggregate demand curve is zero;the aggregate supply curve is vertical.
B) of the aggregate supply curve is zero;the aggregate demand curve is vertical.
C) of both the AD and SAS curves are vertical.
D) of the AD cannot be vertical;the aggregate supply curve is unaffected.

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