Suppose That in a Particular Economy, the Multiplier Is Equal

Multiple Choice

Suppose that in a particular economy, the multiplier is equal to 5. In terms of aggregate demand and aggregate supply, this value for the multiplier means that after an increase in investment

A) at each level of real GDP, the aggregate demand curve shifts upward by an amount equal to 5 times the change in investment.
B) at each price level, the aggregate demand curve shifts rightward by an amount equal to 5 times the change in investment.
C) at each price level, the aggregate supply curve shifts rightward by an amount equal to 5 times the change in investment.
D) at each level of real GDP, the aggregate supply curve shifts upward by an amount equal to 5 times the change in investment.