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Assume an Economy Is in Equilibrium at a Real GDP

Question 66

Multiple Choice

Assume an economy is in equilibrium at a real GDP of $5 trillion.If aggregate expenditure (AE) increases by $1 trillion,the economy's equilibrium real GDP is likely to _____.


A) increase by $1 trillion
B) increase by more than $1 trillion
C) increase by less than $1 trillion
D) decrease by $1 trillion
E) decrease by more than $1 trillion

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