AS effect -elasticity

• What happens when the AS is perfectly inelastic?

  Only price increases; output remains unchanged
• What is the impact of the multiplier on output in the long run?

  It does not affect output in the long run
• How does the AS curve affect price and output in the short run?

  It affects both price and output in the short run
• What is the relationship between the elasticity of the AS curve and its effect on price and output?

  More elastic curves have smaller price effects
• What happens to the effect on output as the AS curve becomes more elastic?

  The effect on output becomes larger
• What is the primary effect of the multiplier when AS is perfectly inelastic?

  It increases price without affecting output
• How does the elasticity of the AS curve influence the overall economic impact of the multiplier?

  Higher elasticity leads to larger output effects
• What is the definition of the multiplier in economics?

  The ratio of change in output to initial change
• How does the multiplier affect the economy in the short run?

  It increases both output and price
• What does the effect of the multiplier depend on?

  The shape of the AS curve
• How does the AS curve influence the multiplier effect?

  It determines the strength of the multiplier effect
• What are the two time frames mentioned regarding the multiplier effect?

  Short run and long run
• How does the distinction between short run and long run affect the multiplier?

  The multiplier effect varies based on time frame