If the Economy's AS Curve Is Completely Horizontal,the Multiplier in the AD/AS

question 128

Multiple Choice

If the economy's AS curve is completely horizontal,the multiplier in the AD/AS model is

• A)infinitely large.
• B)equal to the simple multiplier.
• C)smaller than the simple multiplier.
• D)is zero.
• E)negative.

---

Definitions:

Line Structure

The simplest organizational structure, in which direct lines of authority extend from the top manager to the lowest level of the organization.

Tall Organizations

Organizations characterized by having many levels of hierarchy and management layers between the top executives and the lower-ranking employees.