What can we conclude the flatter the SRAS curve?
A)the easier it is for monetary policy to change real GDP in the long run
B)the harder it is for fiscal policy to change real GDP in the short run
C)the easier it is for monetary policy to change real GDP in the short run
D)the harder it is for monetary policy to change real GDP in the short run

Question

Quizplus · Accepted Answer

A flatter SRAS curve indicates that a larger change in output can be achieved with a smaller change in price level in the short run, making it easier for monetary policy to change real GDP in the short run.

What Can We Conclude the Flatter the SRAS Curve