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An Increase in Aggregate Expenditure Has What Result on Equilibrium

Question 80

Multiple Choice

An increase in aggregate expenditure has what result on equilibrium GDP?


A) Equilibrium GDP rises.
B) Equilibrium GDP is not affected by an increase in aggregate expenditure.
C) Equilibrium GDP falls.
D) Equilibrium GDP may rise or fall depending on the size of the increase in aggregate expenditure relative to the initial level of GDP.

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