Suppose the Multiplier Is 2 and the Short- Run Aggregate

question 83

Multiple Choice

Suppose the multiplier is 2 and the short- run aggregate supply curve is positively sloped.Investment increases by $10 billion.In the short run, equilibrium real GDP

• A)does not change.
• B)increases by less than $20 billion.
• C)increases by more than $20 billion.
• D)decreases by less than $20 billion.
• E)increases by $20 billion.

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