Multiple Choice
Refer to the above diagram, which applies to a private closed economy.If the initial gross investment Ig1 increases to Ig2, the equilibrium GDP will increase by:
A) FE.
B) AB.
C) AD.
D) GE.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: If the multiplier in an economy is
Q3: In a recessionary expenditure gap, the equilibrium
Q7: Refer to the diagram below.The equilibrium condition
Q9: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6686/.jpg" alt=" The tax in
Q10: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6686/.jpg" alt=" Refer to the
Q11: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6686/.jpg" alt=" Refer to the
Q14: In a mixed closed economy,<br>A)government purchases and
Q41: The level of aggregate expenditures in the
Q120: At the $180 billion equilibrium level of
Q151: If government decreases its purchases by $20