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:

Electric Bill

A monthly statement charging an individual or household for the consumption of electricity provided by a utility company.

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A coffee drink made with equal parts espresso, steamed milk, and milk foam.

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Books that are used as standard works for the study of a particular subject.

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A service that allows individuals to book rides in private vehicles, often facilitated by a mobile app, to share costs and reduce the number of cars on the road.