Suppose That Investment Decreases by $15 Billion

question 104

Multiple Choice

Suppose that investment decreases by $15 billion.The multiplier is 2, and the short- run aggregate supply curve is positively sloped.In the short run, equilibrium real GDP

• A)decreases by less than $30 billion.
• B)decreases by $30 billion.
• C)decreases by more than $30 billion.
• D)increases by less than $30 billion.
• E)does not change.

---

Definitions:

Electromagnetic Interference (EMI)

A phenomenon responsible for noise in electric circuits.

PLC System

A programmable logic controller system, an electronic system used for industrial automation, controlling machinery and processes through digital input and output.

Solid-State Switches

Electronic switches that operate without moving parts, using semiconductor devices to switch on or off.