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-Suppose the Price Level Is Fixed

Question 18

Multiple Choice

  -Suppose the price level is fixed.If investment increases by $1 trillion and the aggregate expenditure curve is shown in the figure above,in response equilibrium expenditure increases by ________. A)  $1 trillion. B)  $3 trillion. C)  less than $1 trillion. D)  None of the above answers are correct.
-Suppose the price level is fixed.If investment increases by $1 trillion and the aggregate expenditure curve is shown in the figure above,in response equilibrium expenditure increases by ________.


A) $1 trillion.
B) $3 trillion.
C) less than $1 trillion.
D) None of the above answers are correct.

Correct Answer:

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