Consider the AD/AS Model

question 39

Multiple Choice

Consider the AD/AS model.An increase in government purchases will have no impact on equilibrium real GDP if

• A)the AS curve slopes upward.
• B)the AS curve is vertical.
• C)the AS curve is horizontal.
• D)the marginal propensity to spend is very small.
• E)the simple multiplier is very small.

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Low Wages

Compensation that is considered less than the average or standard in a specific industry or region.

Cultural Intelligence

The ability to understand, respect, and work effectively with people from different cultural backgrounds.

Cultural Differences

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