In the Aggregate Expenditures Model, If a $40 Billion Increase

question 82

True/False

In the aggregate expenditures model, if a $40 billion increase in autonomous investment leads to an increase in equilibrium real GDP of $100 billion at the initial price level, then the multiplier is 2.5.

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Definitions:

Pulmonary Valves

Heart valves located at the opening of the pulmonary artery that prevent backflow of blood into the right ventricle.

Aortic Valves

The valve in the heart that controls blood flow from the left ventricle into the aorta.

Hemorrhagic Shock

A condition of reduced tissue perfusion, inadequate oxygen supply to the cells, often a result of severe blood loss.

Cardiac Output

The volume of blood the heart pumps through the circulatory system in one minute, typically measured in liters per minute.