In the Basic AD/AS Model,the Effect of an Aggregate Demand

question 10

Multiple Choice

In the basic AD/AS model,the effect of an aggregate demand shock is divided between a change in output and a change in the price level.How the effect is divided depends on the

• A)amount of inflation in the economy.
• B)position of the AE curve.
• C)size of the simple multiplier.
• D)slope of the AD curve.
• E)slope of the AS curve.

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