Other Things Remaining Unchanged, the Flatter the Aggregate Supply Curve

question 46

Multiple Choice

Other things remaining unchanged, the flatter the aggregate supply curve:

• A)the greater the expansionary effect of an increase in aggregate demand.
• B)the smaller the inflationary effect of an increase in aggregate demand.
• C)the greater the recessionary effect of a decrease in aggregate demand.
• D)the greater the expansionary effect of a decrease in aggregate demand.
• E)the smaller the recessionary effect of an increase in aggregate demand.

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Definitions:

Distinctive

Having unique characteristics that set something or someone apart from others.

Patent

A government authority or license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention.

Medical Use

Refers to the utilization of drugs, procedures, therapies, or devices to treat or manage a health condition.

Fingernail-Sized

A descriptive term indicating something very small, roughly the size of a human fingernail.