Solved

Suppose That the Slope of the AE Curve Is 0

Question 154

Multiple Choice

Suppose that the slope of the AE curve is 0.80. If prices remain constant and government expenditure increases by $10 billion, what will be the value of the change in real GDP?


A) $8 billion
B) $2 billion
C) $10 billion
D) $50 billion

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q149: For a household, the marginal propensity to

Q150: Between 2013 and 2014 the government estimates

Q151: When disposable income is 0, consumption is

Q152: Suppose that last year the slope of

Q153: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above

Q155: The marginal propensity to consume is the<br>A)

Q156: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above

Q157: You observe that unplanned inventories are increasing.

Q158: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above

Q159: Please explain the relationship between consumption, disposable