Suppose That the Slope of the AE Curve Is 0

question 290

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

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Definitions:

Graphic Rating Scale

A method used in questionnaires that involves a line or scale where respondents indicate their level of agreement or feeling about a particular item by marking a position along the scale.

Checklist

A list of items or tasks to be checked or completed, used as a reminder or for systematic verification.

Structured Interview

A systematic interviewing method where all candidates are asked the same predetermined questions in the same order to ensure comparability of data.

Transformational Leadership

A style of leadership where the leader works with their team to identify needed change, creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of the group.