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Suppose the Slope of the Aggregate Expenditures Curve Is 0

Question 143

Multiple Choice

Suppose the slope of the aggregate expenditures curve is 0.75. An increase in autonomous investment expenditure of $6 billion would produce an ultimate increase in equilibrium real GDP of


A) $0.25 billion.
B) $6 billion.
C) $12 billion.
D) $24 billion.

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