Multiple Choice
A $500 increase in investment will shift the aggregate expenditures curve up by:
A) exactly $500 and will increase the equilibrium level of real GDP by exactly $500.
B) exactly $500 and will increase the equilibrium level of real GDP by less than $500.
C) exactly $500 and will increase the equilibrium level of real GDP by more than $500.
D) more than $500 and will increase the equilibrium level of real GDP by more than $500.
E) less than $500 and will increase the equilibrium level of real GDP by less than $500.
Correct Answer:
Verified
Correct Answer:
Verified
Q40: Exhibit 9-3 Keynesian aggregate-expenditures model <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg"
Q41: Exhibit 9-1 GDP and consumption data <img
Q42: Exhibit 9-1 GDP and consumption data <img
Q43: If aggregate expenditures (AE)are less than aggregate
Q44: If the spending multiplier is equal to
Q46: In the aggregate expenditures model, assume that
Q48: If the multiplier is 4, equilibrium real
Q50: Use the aggregate expenditures model and assume
Q55: Assume the economy is in recession, the
Q183: If MPC = 0.9, equilibrium real GDP