Due to inflationary pressures, the national income of households has been spread across a higher overall price base for goods and services. How will this affect be shown in an AD/ASAD/AS model?
A. nearly vertical AS slope at the far right
B. nearly horizontal AD curve at the far left
C. a downward sloping AD curve
D. a downward sloping AS curve
Answer:C
Due to inflationary pressures, the national income of households has been spread across a higher overall price base for goods and services. How will this affect be shown in an AD/ASAD/AS model?
A. nearly vertical AS slope at the far right B. nearly horizontal AD curve at the far left C. a downward sloping AD curve D. a downward sloping AS curve
Explanation: Type: Multiple Choice