The Slope of the SAS Curve Is Important Because It

question 44

Multiple Choice

The slope of the SAS curve is important because it

• A)explains the impact of supply side policies on the economy.
• B)explains the impact of both supply and demand side policies on Y and P.
• C)partially explains the impact of AD stabilization policies on Y and P.
• D)None of the above.

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Definitions:

Personal Check

A personal check is a paper instrument that allows individuals to transfer money from their bank account to another person or entity.

Average Price

The sum of prices of all goods or services divided by the number of units, used to give a general idea of price levels in a market.

Savings And Loan Debacle

Refers to a financial crisis in the United States during the 1980s and early 1990s when many savings and loan associations failed due to risky business practices.

Interest Rates

The cost of borrowing money expressed as a percentage of the amount borrowed, or the return on invested savings.