How Will a Steeper Short-Run Aggregate Supply Curve Affect Equilibrium

question 57

Multiple Choice

How will a steeper short-run aggregate supply curve affect equilibrium output?  

• A) The impact of a shift in aggregate demand on equilibrium output will be smaller. 
• B) The value of the spending multiplier will be larger, and will thus have a greater impact on equilibrium output. 
• C) The impact of a shift in aggregate demand on equilibrium output will be larger. 
• D) A smaller change in government spending will be needed to achieve the desired change in equilibrium output.

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Definitions:

Brachium

Refers to the upper arm area, specifically the portion between the shoulder and the elbow.

Esophageal Arteries

Arteries that supply blood to the esophagus.

Subscapular Artery

A blood vessel that supplies blood to the scapula area, including the shoulder blade and surrounding muscles.

Popliteal Vein

A vein located behind the knee that drains blood from the lower leg into the femoral vein.