Suppose the Slope of the Aggregate Expenditures Curve Is 0

question 143

Multiple Choice

Suppose the slope of the aggregate expenditures curve is 0.75. An increase in autonomous investment expenditure of $6 billion would produce an ultimate increase in equilibrium real GDP of

• A) $0.25 billion.
• B) $6 billion.
• C) $12 billion.
• D) $24 billion.

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Definitions:

Mode

The value that appears most frequently in a data set.

Median

A statistical measure denoting the middle value in a data set, where half the numbers are above and half below.

Mean

A statistical measure that calculates the average value of a set of numbers by adding all the numbers together and dividing by the count of those numbers.

Mode

The value that appears most frequently in a given set of data.