If a shift in aggregate demand only affects real Gross Domestic Product (GDP), then the short-run aggregate supply (SRAS) curve must be (D) horizontal.
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What is aggregate demand?</h3>
- Aggregate demand, also known as domestic final demand in macroeconomics, is the total demand for final goods and services in an economy at any given time.
- It is frequently referred to as effective demand, albeit this phrase is distinguished at times.
- This is a country's demand for its gross domestic output.
- Aggregate demand is estimated by combining consumer expenditure, government and business investment spending, and net imports and exports.
- If a change in aggregate demand has no effect on real GDP, then the short-run aggregate supply (SRAS) curve must be horizontal.
Therefore, if a shift in aggregate demand only affects real Gross Domestic Product (GDP), then the short-run aggregate supply (SRAS) curve must be (D) horizontal.
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Complete question:
If a shift in aggregate demand only affects real Gross Domestic Product (GDP), then the short-run aggregate supply (SRAS) curve must be
(A) Vertical
(B) Upward sloping
(C) Downward sloping
(D) Horizontal
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Answer:
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