Consider an Economy with a Relatively Steep AS Curve

question 84

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

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