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:

Regio-

A prefix indicating the region or position in a molecule where a chemical reaction occurs, often critical in determining the outcome of synthesis.

Meso Dibromide

A meso compound formed by the dibromination of an alkene, exhibiting optical inactivity due to internal symmetry.

(E)-Hex-3-Ene

A linear six-carbon compound with a double bond between the third and fourth carbons in the E (trans) configuration.

Enantiomeric Dibromides

Compounds that are mirror images of each other, each containing two bromine atoms attached to a carbon-based skeleton.