If the economy is on the steep part of the AS curve, the multiplier will be

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When the economy is on the steep part of the Aggregate Supply (AS) curve, it indicates that the economy is near its capacity, and additional increases in demand lead to higher prices rather than increases in output. Therefore, the multiplier effect is smaller because additional spending leads more to inflation than to increases in real GDP. This contrasts with the flat portion of the AS curve, where there is slack in the economy, and increases in demand can lead to increases in output without significant price increases, resulting in a larger multiplier effect.

If the Economy Is on the Steep Part of the AS Curve