If the Economy's AS Curve Is Vertical,the Multiplier in the AD/AS

question 25

Multiple Choice

If the economy's AS curve is vertical,the multiplier in the AD/AS model is

• A)infinitely large.
• B)equal to the simple multiplier.
• C)smaller than the simple multiplier.
• D)zero.
• E)negative.

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Definitions:

Ratification

The action of officially approving or confirming a previous act or decision, which was made without authorization or was otherwise questionable, to make it legally valid.

Voidable Contract

A contract that remains valid until one party, who is entitled to do so because of a defect in the contract formation, chooses to void it.

Mixed Message

A communication that contains conflicting or contradictory information, leading to confusion or misunderstanding.

Rescission

The cancellation of a contract, returning all parties involved to their states prior to the contract's execution.