Suppose that the demand for money were to become less sensitive to changes in GDP. You would then draw
A) flatter LM curves and steeper aggregate demand curves.
B) steeper LM curves and flatter aggregate demand curves.
C) flatter aggregate demand and LM curves.
D) flatter LM curves but no corresponding change in the slope of the aggregate demand curve.
E) LM and aggregate demand curves with the same slopes as before.
Correct Answer:
Verified
Q42: If investment were shown to be insensitive
Q43: The price adjustments of a dynamic model
Q44: In the short run, output is determined
Q45: Suppose net exports were to become less
Q46: The slope of an aggregate demand curve
Q48: One difference between the short run and
Q49: Given IS and LM curves of the
Q50: Actual GDP will fall short of potential
Q51: Suppose investment were to become more sensitive
Q52: Suppose that net exports were to become
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