When the AD Curve Is Relatively Flat

question 8

Multiple Choice

When the AD curve is relatively flat,

• A) only fiscal policy can be used to increase output.
• B) only monetary policy can be used to increase output.
• C) both fiscal policy and monetary policy can be used to increase output.
• D) neither fiscal policy nor monetary policy can be used to increase output.

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Definitions:

HHI

The Herfindahl-Hirschman Index, a measure of market concentration used to determine the level of competition within an industry.

Merger

The combination of two or more companies into a single entity, typically to leverage synergies or improve competitiveness.

Market Share

The portion of a market controlled by a particular company or product.

HHI

The Herfindahl-Hirschman Index, a measure of market concentration to assess the competition level among firms.