If the economy's AS curve is very steep and there is a negative aggregate demand shock,the result will be
A) an increase in the price level and a decrease in real national income.
B) an increase in both the price level and real national income.
C) a decrease in the price level with almost no change in real national income.
D) a decrease in the price level and an increase in real national income.
E) no change in either price level or output.
Correct Answer:
Verified
Q101: In the basic AD/AS model,the effect of
Q104: Consider the basic AD/AS model with an
Q106: Which of the following will cause a
Q107: Aggregate supply shocks cause the price level
Q110: Consider the basic AD/AS model.A rise in
Q115: If the economy is in macroeconomic equilibrium
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents