Use the Following to Answer Questions

question 215

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Expenditures Curve
Figure 13-6
-(Exhibit: Aggregate Expenditures Curve) Suppose the government purchases economy rise by $100. What is the new equilibrium level of real GDP?

• A) $1,700
• B) $1,800
• C) $1,900
• D) $2,100

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Definitions:

Marginal Costs

The supplementary cost that comes with producing an extra unit of a good or service.

Mass Affordability

The widespread ability of the average consumer to purchase goods and services, often due to lower prices or increased income levels.

Economies of Scale

Enterprises see cost efficiencies due to their operating scale, with the cost for every unit of output generally declining as the scale enlarges.