Suppose That the Slope of the AE Curve Is 0

question 341

Multiple Choice

Suppose that the slope of the AE curve is 0.80. If prices remain constant and government expenditures increase by $10 billion, what will be the change in real GDP?

• A) $50 billion
• B) $2 billion
• C) $10 billion
• D) $8 billion

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Definitions:

Bipolar Disorder

A mental condition marked by alternating periods of elation and depression, previously called manic depression.

Intense Sadness

A profound state of sorrow or despair, often associated with major depressive episodes or significant loss.

Stage Fright

Anxiety, fear, or persistent phobia which may be aroused in an individual by the requirement to perform in front of an audience.

Specific Phobia

An intense, irrational fear of or anxiety towards an object or situation, leading to avoidance behavior.