Multiple Choice
Given that the economy is operating in the horizontal section of the aggregate supply curve in the simple Keynesian model,an increase in autonomous spending will ____________________,assuming that the economy remains in the horizontal section of the aggregate supply curve.
A) increase Real GDP and raise the price level
B) decrease Real GDP and raise the price level
C) increase Real GDP and leave the price level unchanged
D) increase Real GDP and lower the price level
Correct Answer:
Verified
Correct Answer:
Verified
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Q70: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6439/.jpg" alt=" -Refer to Exhibit
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