The Flatter the SP Curve

question 66

Multiple Choice

The flatter the SP curve

• A)the greater will be the shift in the SP.
• B)the greater will be the change in inflation and the smaller will be the change in real GDP for any given change in nominal GDP growth.
• C)the greater will be the change in real GDP and the smaller will be the change in inflation for any given change in nominal GDP growth.
• D)the greater will be the growth of nominal GDP.

---

Definitions:

Demand Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price.

Price Conscious

Being aware of and giving importance to the cost of goods and services when making purchasing decisions.

Demand

The desire combined with purchasing power for specific goods or services at a given time and price.

Lunchbox

A container used to carry food, often for consumption at work or school.