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Fri 1 Apr, 2011 07:16 pm
When the short-run aggregate supply curve is steep, then for a given increase in aggregate demand,
a. the increase in real GDP will be relatively large and the increase in the price level will be relatively small
b. the increases in real GDP and the price level will be small
c. the increase in real GDP will be relatively small and the increase in the price level will be relatively large
d. the decrease in real GDP will be larger than the decrease in the price level
e. the increases in real GDP and the price level will be large
@leilanikiri,
f. It makes no difference to ordinary folk managing to have a life on substandard wages in overpriced housing purchased at rip off rates from price gouging financial institutions who whine for government bailouts when their greed brings them undone.
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