When the Short-Run Aggregate Supply Curve Is Steep,then for a Given

question 200

Multiple Choice

When the short-run aggregate supply curve is steep,then for a given increase in aggregate demand,

• A)the increase in real GDP will be relatively small and the increase in the price level will be relatively large
• B)the increase in real GDP will be relatively large and the increase in the price level will be relatively small
• C)the increases in real GDP and the price level will be large
• D)the increases in real GDP and the price level will be small
• E)the decrease in real GDP will be larger than the decrease in the price level