The Slope of the AE Curve Is

question 366

Essay

The slope of the AE curve is .80. What is the multiplier? Everything else the same, by how much does equilibriu aggregate expenditure increase if
a) exports increase from $1.75 trillion to $2.25 trillion.
b) government expenditure on goods and services decrease from $2.0 trillion to $1.8 trillion.
c) investment increases from $1.2 trillion to $2.3 trillion.

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Definitions:

Assessment Process

A systematic procedure for collecting, analyzing, and interpreting information to evaluate individuals, groups, or programs.

DSM-I

The first edition of the Diagnostic and Statistical Manual of Mental Disorders, published by the American Psychiatric Association.

20th Century

A historical era spanning from the year 1901 to 2000, noted for significant developments in technology, politics, and culture.

Single-axis Approach

A diagnostic method focusing on one dimension or aspect of an issue or disease, often criticized for oversimplifying complex problems.