The multiplier effect makes the aggregate demand curve:
A)steeper.
B)flatter.
C)horizontal.
D)vertical.

Question

Quizplus · Accepted Answer

The multiplier effect amplifies the impact of government spending or other changes in aggregate demand, leading to a larger overall effect on output. This makes the aggregate demand curve flatter because a given change in price levels results in a larger change in output than it would without the multiplier effect.

The Multiplier Effect Makes the Aggregate Demand Curve