Multiple Choice
An increase in aggregate expenditure has what effect on the equilibrium GDP?
A) Equilibrium GDP rises.
B) Equilibrium GDP is not affected by an increase in aggregate expenditure.
C) Equilibrium GDP falls.
D) Equilibrium GDP may rise or fall depending on the size of the increase in aggregate expenditure relative to the initial level of GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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