Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

question 69

Multiple Choice

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. If government purchases increases by $200 billion, the aggregate expenditures curve will shift up by

• A) $200 billion.
• B) $200 billion *the multiplier.
• C) $200 billion * marginal propensity to consume.
• D) $200 billion *(1 ÷ marginal propensity to consume).

---

Definitions:

Recruit

To enlist someone for a purpose, often used in the context of hiring or enlisting new members or employees.

Members

Members refer to individuals who are part of an organization, group, or community, typically sharing common interests or goals.

Potential Coalitions

Possible alliances or partnerships that may form between parties or individuals with shared interests or goals.

Coalition Members

are individuals or entities that have joined forces in pursuit of a common goal or interest, especially within the context of negotiations or policy-making.