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.

---

Definitions:

Hiroshima

A city in Japan that was the first to experience the devastating impact of an atomic bomb, dropped by the United States during World War II, on August 6, 1945.

Biotechnology Scientists

Professionals who apply biology and chemistry to develop products and processes that improve human life and the environment.

Industry Affiliations

Connections or associations between individuals or organizations and specific industries, often indicating a relationship or interest.

Petr Kropotkin

was a Russian philosopher, scientist, and anarchist, known for his advocacy of communal anarchism and mutual aid.