a. AS curve is more vertical so the multiplier is more effective.
b. AS curve is more vertical so the multiplier is less effective.
c. AS curve is more horizontal so the multiplier is more effective.
d. AD and AS curves are more horizontal to the multiplier is more effective.
e. AD curve is more vertical so the multiplier is more effective.
The right answer for the question that is being asked and shown above is that: "d. AD and AS curves are more horizontal to the multiplier is more effective." Fiscal policy is limited when the slope of the AD and AS curves are more horizontal to the multiplier is more effective.
