If the Economy's AS Curve Is Very Steep and There

question 53

Multiple Choice

If the economy's AS curve is very steep and there is a negative aggregate demand shock, the result will be

• A)an increase in both the price level and national income.
• B)a decrease in the price level and an increase in national income.
• C)a decrease in the price level with almost no change in national income.
• D)no change in either price level or output.
• E)an increase in the price level and a decrease in national income.

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Definitions:

Jazz

A music genre that originated in the African American communities of New Orleans, early in the 20th century, characterized by strong, rhythmic underpinnings, improvisation, and distinctive tonalities.

James Reese Europe

An influential African American musician and bandleader, pivotal in the early 20th century for popularizing jazz.

Marines

A branch of the military services specialized in amphibious operations, including the landing forces for assault operations of naval expeditions.

Navy

Refers to the branch of a nation's armed forces that is responsible for naval warfare and operations at sea, equipped with ships, submarines, and aircraft for combat and defense purposes.