When the SRAS Curve Slopes Upward, the Actual Affect of an Increase

question 44

Multiple Choice

When the SRAS curve slopes upward, the actual affect of an increase in real autonomous spending on equilibrium real GDP is smaller than predicted by the multiplier because

• A) the price level falls.
• B) the price level rises
• C) real GDP increases.
• D) real GDP decreases.

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Definitions:

Grapevine

An informal communication network within an organization, often characterized by rumor, gossip, and unofficial information.

Gossip

Informal communication that often involves information about other people that is not necessarily confirmed as true and which might include personal or private details.

Suggestion System

A formal method where employees can submit ideas or proposals to improve organizational processes or products.

Organization's Telephone Hotline

A dedicated phone line set up by an organization to offer information, support, or emergency services to its members or the public.