When the SRAS Curve Slopes Upward, the Actual Affect of an Increase

question 44

Multiple Choice

When the SRAS curve slopes upward, the actual affect of an increase in real autonomous spending on equilibrium real GDP is smaller than predicted by the multiplier because

• A) the price level falls.
• B) the price level rises
• C) real GDP increases.
• D) real GDP decreases.

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