An Aggregate Demand (AD)shock Will Have a Small Effect on Real

question 66

Multiple Choice

An aggregate demand (AD) shock will have a small effect on real GDP and a large effect on the price level when

• A)the AS curve is steep.
• B)the AD curve intersects the AS curve on the downward-sloping portion of the AS curve.
• C)the AS curve is close to horizontal.
• D)the AD curve is steep.
• E)the AD curve is flat.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Tension

The state of being stretched tight, which can be physical in terms of objects or emotional/psychological in terms of feelings.

Drug Availability

The extent to which medications and treatments can be obtained by the public, often influenced by factors like regulatory approvals, manufacturing, and distribution networks.

Harm Control

A strategy or set of strategies aimed at reducing the negative effects of hazardous substances or behaviors on individuals and communities.