When the Economy's AS Curve Is Positively Sloped,the Multiplier in the AD/AS

question 79

Multiple Choice

When the economy's AS curve is positively sloped,the multiplier in the AD/AS model is

• A)constant.
• B)equal to one.
• C)equal to the simple multiplier.
• D)smaller than the simple multiplier.
• E)larger than the simple multiplier.

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Definitions:

AASB 2

An accounting standard that specifies the financial reporting requirements for entities to reflect the effects of transactions involving share-based payment transactions.

Equity Instruments

Financial instruments that represent ownership in a company, such as stocks, giving holders a claim on the company's residual assets and earnings.

Remuneration Expense

The total cost incurred by an organization for the payment of salaries, wages, and other forms of employee compensation.

Exercise Price

The price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.