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.

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Definitions:

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