Figure 10-2

-In Figure 10-2, which segment of the aggregate supply curve has the smallest multiplier effect?
A)AB
B)BC
C)CD
D)DG

Question

Figure 10-2
​ 
-In Figure 10-2, which segment of the aggregate supply curve has the smallest multiplier effect?
A)AB 
B)BC 
C)CD 
D)DG

Quizplus · Accepted Answer

The segment DG of the aggregate supply curve represents the economy at or very close to full employment, where increases in aggregate demand have the smallest multiplier effect due to capacity constraints and potential inflationary pressures.

Figure 10-2 ​

Figure 10-2