If the Economy Is on the Steep Part of the AS Curve

question 346

Multiple Choice

If the economy is on the steep part of the AS curve, the multiplier will be

• A) larger than it would be if the economy were on the flat portion of the AS curve.
• B) smaller than it would be if the economy were on the flat portion of the AS curve.
• C) constant regardless of where the economy is on the AS curve.
• D) infinite, as compared to zero if the economy is on the flat portion of the AS curve.

---

Definitions:

Economic Rewards

Financial or non-financial gains received as a result of one's investment or labor.

Economic Penalties

Financial sanctions imposed on individuals, organizations, or countries to enforce laws or regulations, or as punishment for violations.

Population Control

Strategies or policies aimed at regulating the growth of a human population.

Existing Customs

Traditions or practices that have been established over time within a particular culture or society.