Question: What changes to our model would make that the Aggregate Demand (AD) curve would become flatter in our AS AD diagrams. None of the options
What changes to our model would make that the Aggregate Demand (AD) curve would become flatter in our AS AD diagrams. None of the options is correct Firms' pricing decisions are more sensitive to demand conditions. The central bank fights inflation less aggressively. Firms' demand for investment spending is less sensitive to changes in the real interest rate. Firms' demand for investment spending depends positively on short-run output. The ZLB is binding
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