Aggregate Demand Shocks Have a Large Effect on Real GDP

question 114

Multiple Choice

Aggregate demand shocks have a large effect on real GDP and a small effect on the price level

• A)the steeper the AS curve.
• B)on the downward-sloping portion of the AS curve.
• C)the flatter the AS curve.
• D)when the AS curve is vertical.
• E)if the AD curve is steep.

---

Definitions:

Mucus

A sticky, slippery substance produced by mucous membranes and glands, used to moisten, protect, and trap particles in the airways, digestive system, and other areas.

Digested First

A methodology or process in which material, typically information or data, is simplified or broken down before further analysis or use.

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, serving as a major energy source in the diet of animals and humans.

Fibrinogen

A blood plasma protein that's essential in blood clot formation.