Aggregate Demand (AD)shocks Have a Smaller Effect on Real GDP

question 95

Multiple Choice

Aggregate demand (AD) shocks have a smaller effect on real GDP and a larger effect on the price level

• A)the steeper the AS curve.
• B)on the downward-sloping portion of the AS curve.
• C)the flatter the AS curve.
• D)on the upward-sloping portion of the AS curve.
• E)if the AD curve is flatter.

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