Answer the following:
a. A reduction in short-run aggregate demand likely causes a decline in...
Answer the following:
a. A reduction in short-run aggregate demand likely causes a decline in real output, rather than the price level, because .
a. output is flexible downward.
b. output is inflexible downward.
c. prices are flexible downward.
d. prices are inflexible downward.
b. A full-strength multiplier applies to a decrease in aggregate demand when aggregate.
demand is vertical.
supply is horizontal.
demand is horizontal.
supply is vertical.
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