Aggregate Demand Shocks Have a Large Effect on Real GDP

question 17

Multiple Choice

Aggregate demand shocks have a large effect on real GDP and a small effect on the price level

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

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