A Decrease in AS Will Trigger Less Inflation Under Which

question 113

Multiple Choice

A decrease in AS will trigger less inflation under which of the following conditions?

• A)AD is relatively steep.
• B)AD is relatively flat.
• C)AS is relatively steep.
• D)AS is relatively flat.

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Definitions:

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The fee, shown as a percentage of the principal amount, that a lender requires from a borrower for the utilization of resources.

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An economic phenomenon where the general level of prices for goods and services increases over time.