Consider an Economy with a Relatively Steep AS Curve

question 118

Multiple Choice

Consider an economy with a relatively steep AS curve. If the AD curve shifts to the left, then the price level will
And national output will .

• A) increase slightly; significantly increase
• B) increase slightly; significantly decrease
• C) increase sharply; increase slightly
• D) fall sharply; will not change.
• E) fall sharply; decrease slightly.