When the Economy's AS Curve Is Positively Sloped,the Multiplier in the AD/AS

question 79

Multiple Choice

When the economy's AS curve is positively sloped,the multiplier in the AD/AS model is

• A)constant.
• B)equal to one.
• C)equal to the simple multiplier.
• D)smaller than the simple multiplier.
• E)larger than the simple multiplier.

---

Definitions:

Reciprocal

Pertaining to a mutual exchange or relationship where two parties give and take symmetrically.

Functional Currency

The currency of the primary economic environment in which an entity operates and generates cash flows.

Currency

A medium of exchange for goods and services, typically issued by a government.

Clear-Cut

Unambiguous or obvious, often used to describe decisions or distinctions that are straightforward and easily discerned.