Question

For a given increase in aggregate demand, the steeper the slope of the short-run aggregate supply curve, the is the increase in the price level and the _is the multiplier effect on real GDP in the short run.

O A. smaller, smaller
O B. larger; smaller
O C. larger; larger
O D. smaller; larger

Answer 1

Answer: the answer A

Explanation: The upward-sloping aggregate supply curve—also known as the short run aggregate supply curve—shows the positive relationship between price level and real GDP in the short run.