When the Short-Run Aggregate Supply Curve Is Steep,then for a Given

question 132

Multiple Choice

When the short-run aggregate supply curve is steep,then for a given increase in aggregate demand:

• A)the increase in real GDP will be relatively small and the increase in the price level will be relatively large.
• B)the increase in real GDP will be relatively large and the increase in the price level will be relatively small.
• C)the increase in both real GDP and the price level will be large.
• D)the increase in both real GDP and the price level will be small.
• E)the decrease in real GDP will be larger than the decrease in the price level.

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Definitions:

Total Purchases

The aggregate amount of goods and services bought over a certain period of time.

Percentage of Sales

A financial metric or approach calculating a certain cost or investment as a proportion of sales revenue, useful in budgeting and analysis.

Industry to Industry

Transactions or interactions that occur between businesses within the same industry, often related to supply chain, services, or B2B sales.

Organizational Risk Management

The systematic process of identifying, assessing, managing, and monitoring potential risks that could impact an organization's operations, reputation, or objectives.