Aggregate Demand Shocks Have a Large Effect on Real GDP

question 114

Multiple Choice

Aggregate demand shocks have a large effect on real GDP and a small 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)when the AS curve is vertical.
• E)if the AD curve is steep.

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Definitions:

Direction of the Relationship

Refers to the causal relationship between variables, indicating whether one variable increases or decreases as another variable changes.

Driving Accidents

Incidents involving vehicles in motion which result in damage, injury, or death.

Representative Sample

A subset of a population that accurately reflects the members of the entire population, often used in research to draw conclusions about the population as a whole.

Survey Research

A research method involving the collection of data from a predetermined group of respondents to gather information and insights.