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Holding All Else Constant, a Change in Autonomous Aggregate Expenditures

Question 3

Multiple Choice

Holding all else constant, a change in autonomous aggregate expenditures will shift in aggregate demand by an amount equal to


A) the change in autonomous aggregate expenditures.
B) the multiplier times the change in autonomous aggregate expenditures.
C) the change in real GDP divided by the change in autonomous aggregate expenditures.
D) the multiplier.

Correct Answer:

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