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In the Aggregate Expenditures Model, If a $50 Billion Increase

question 170

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In the aggregate expenditures model, if a $50 billion increase in investment leads to an increase in equilibrium real GDP of $250 billion at the initial price level, then the multiplier is 4.

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Definitions:

Social Behavior

Actions and reactions of individuals in response to the behaviors or presence of others in a social context.

Rejection

The act of dismissing or refusing someone or something, often leading to psychological effects such as feelings of inadequacy or sadness.

Aggression

Aggression is behavior aimed at causing harm or pain to others, which can be physical or verbal, and motivated by various factors including anger, frustration, or social dominance.

Sociometric Techniques

Quantitative methods used to measure social relationships and structures, often by analyzing the choices or preferences within a group.

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