Consider an Economy with a Relatively Steep AS Curve

question 79

Multiple Choice

Consider an economy with a relatively steep AS curve.If the AD curve shifts to the left,then the price level will ________ and national output will ________.

• A)increase slightly; significantly increase
• B)increase slightly; significantly decrease
• C)increase sharply; increase slightly
• D)fall sharply; will not change.
• E)fall sharply; decrease slightly.

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Definitions:

Oral Cavity

The mouth, an opening in the body where food intake occurs, beginning the process of digestion and housing many taste buds.

Esophagus

The tube that connects the throat (pharynx) with the stomach, transporting swallowed food and liquids.

Sphincters

Circular muscles that constrict passages or openings in the body, regulating the flow of substances within various organs.

Cartilage

Firm, smooth, resilient, nonvascular connective tissue.