Refer to the Above Diagram for a Private Closed Economy

question 184

Multiple Choice

Refer to the above diagram for a private closed economy.In this economy, aggregate expenditures:

• A)do not change as GDP increases.
• B)increase by $2 for every $5 increase in GDP.
• C)increase by $2 for every $4 increase in GDP.
• D)increase by $2 for every $3 increase in GDP.