Exhibit 10-5 -In Exhibit 10-5, Assume the Economy Is in Equilibrium with in Equilibrium

Multiple Choice

Exhibit 10-5
-In Exhibit 10-5, assume the economy is in equilibrium with real GDP of $5 trillion dollars. If aggregate expenditure (AE) increases by $1 trillion, we would expect the economy's equilibrium real GDP 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) remain unchanged