If an increase in the Z factors resulted in a very large change in the price level and a very small change in aggregate output
A) then in the U.S. economy investment demand must not be sensitive to the interest rate.
B) then the U.S. economy must have been on the very steep part of its short-run aggregate supply curve.
C) then the U.S. economy must have been on the very flat part of its short-run aggregate supply curve.
D) then the U.S. aggregate demand curve must be very steep.
Correct Answer:
Verified
Q87: If the Fed has a strong preference
Q88: In a binding situation,there is _ crowding
Q89: In a binding situation,an increase in government
Q90: When the AD curve is relatively flat,
Q91: A decrease in the Z factors represents
A)
Q93: If the Fed has a strong preference
Q94: In a binding situation,
A) only changes in
Q95: An intended goal of expansionary fiscal policy
Q96: Other things equal, an increase in the
Q97: If the Fed has a strong preference
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