Suppose That the Slope of the AE Curve Is 0

question 215

Multiple Choice

Suppose that the slope of the AE curve is 0.80. Then an increase of investment of $10 billion leads to an increase in equilibrium real GDP equal to

• A) $10.0 billion.
• B) $50.0 billion.
• C) $8.0 billion.
• D) $12.5 billion.

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