Exhibit 11-5 -In an Economy Characterized by the Aggregate Expenditure Line in Expenditure

Multiple Choice

Exhibit 11-5
-In an economy characterized by the aggregate expenditure line in Exhibit 11-5,how would a $100 increase in autonomous government spending impact real GDP?

A) decrease real GDP by $200
B) decrease real GDP by $100
C) no impact on real GDP
D) increase real GDP by $100
E) increase real GDP by $200