Aggregate Demand (AD)shocks Have a Smaller Effect on Real GDP

question 95

Multiple Choice

Aggregate demand (AD) shocks have a smaller effect on real GDP and a larger 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)on the upward-sloping portion of the AS curve.
• E)if the AD curve is flatter.

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Definitions:

Public Sector

The part of the economy that is controlled by the government, including public services and enterprises.

State-run Lotteries

Lotteries operated by state governments in which participants buy tickets for a chance to win monetary prizes, often contributing to public funding.

Education Sector

A segment of society focused on the provision, development, and delivery of educational services and institutions.