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

question 128

Multiple Choice

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

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

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Definitions:

Existential Import

The presupposition that a statement implies the existence of the subject it mentions.

Venn Diagram

A diagram representing mathematical or logical sets pictorially as circles or closed curves within an enclosing rectangle (the universal set), common elements of the sets being represented by intersections of the circles.

Traditional View

A perspective or approach that aligns with established or long-standing practices, beliefs, or interpretations.

Existential Import

A concept within logical and philosophical analysis focusing on the existential assumptions within propositional statements.