Aggregate Demand (AD)shocks Have a Smaller Effect on Real GDP

question 34

Multiple Choice

Aggregate demand (AD) shocks have a smaller effect on real GDP and a larger effect on the price level,

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

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Definitions:

NPD Process

The stages a company undergoes to develop and market a new product, from idea generation to commercialization.

Product Adopters

Individuals or entities that purchase and utilize new products or technologies early in their lifecycle.

Laggard Group

The last segment of a population to adopt new technologies or innovations, often resistant to change and skeptical of new trends.

Advance Consumption

The purchase or usage of a product or service before its actual need or before it is physically received.