If Prices Are Fixed, an Increase in Aggregate Expenditures Results

question 23

Multiple Choice

If prices are fixed, an increase in aggregate expenditures results in an increase in equilibrium GDP that

• A) has no necessary relationship to the size of the change in aggregate expenditure.
• B) is greater than the change in aggregate expenditure.
• C) is equal to the change in aggregate expenditure.
• D) is less than the change in aggregate expenditure.

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Definitions:

Average Income

the total income received by the population divided by the number of individuals in the population.

Farm Policy

Government regulations and policies that aim to stabilize food prices, ensure adequate food supply, and protect the interests of farmers and agricultural sectors.

U.S.

United States, a country in North America consisting of 50 states and a federal district, known for its significant influence on global economics and politics.

Demand Volatility

Refers to the degree of unpredictability or fluctuations in consumer demand for products or services over time.