Which of the Following Best Characterizes the Effects of the Flatness

question 163

Multiple Choice

Which of the following best characterizes the effects of the flatness of the short-run aggregate supply curve?  

• A) the flatter the short-run aggregate supply curve, the larger the value of the spending multiplier 
• B) the flatter the short-run aggregate supply curve, the smaller the value of the spending multiplier 
• C) the flatter the short-run aggregate supply curve, the larger the impact of a shift in aggregate demand on the equilibrium price level 
• D) the flatter the short-run aggregate supply curve, the larger the impact of a shift in aggregate demand on the equilibrium output level

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Definitions:

Conscientiousness

A personality trait characterized by thoroughness, reliability, and a strong sense of responsibility.

Factor Analysis

Analyzing correlations among items to see which form related clusters.

Basic Traits

Fundamental personality characteristics that are thought to be universal and relatively stable over time.

Factor Analytic

A statistical method used to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved variables called factors.