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:

Audible Range

refers to the range of sound frequencies that can be heard by the human ear, typically from 20 Hz to 20,000 Hz.

Cycles Per Second

A unit of frequency equivalent to one oscillation or vibration per second, known as Hertz (Hz).

Doppler Shift

A change in frequency or wavelength of a wave in relation to an observer moving relative to the source of the wave.

Decibels

A unit of measurement used to express the intensity of sound, based on a logarithmic scale.