Consider an Economy with a Relatively Steep AS Curve

question 79

Multiple Choice

Consider an economy with a relatively steep AS curve.If the AD curve shifts to the left,then the price level will ________ and national output will ________.

• A)increase slightly; significantly increase
• B)increase slightly; significantly decrease
• C)increase sharply; increase slightly
• D)fall sharply; will not change.
• E)fall sharply; decrease slightly.