When the Aggregate Demand Curve Shifts, the Steeper the SAS

question 254

Multiple Choice

When the aggregate demand curve shifts, the steeper the SAS curve the ________ will be a change in the price level and the ________ will be the multiplier.

• A) larger; larger
• B) larger; smaller
• C) smaller; larger
• D) smaller; smaller

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Definitions:

Focus Group

A small, diverse group of people whose reactions are studied to gauge the response to a specific product, service, or policy.

Total Revenue

The total amount of money received by a firm from selling goods or services before any costs or expenses are deducted.

Rent-Seeking Activity

Economic practices aimed at increasing one's share of existing wealth without creating new value, often through manipulation or exploitation of the political environment.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at each price point.