If Prices Are Fixed, an Increase in Aggregate Expenditures Results

question 91

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 equal to the change in aggregate expenditure.
• C)is less than the change in aggregate expenditure.
• D)is greater than the change in aggregate expenditure.

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Definitions:

Probability of Success

The likelihood of achieving a desired outcome or result in an experiment or trial.

Normal Distribution

A bell-shaped data distribution where most observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Sample Proportion

The fraction or percentage of a sample that exhibits a particular trait or attribute.

Population Proportion

The percentage of individuals in a population who share a certain characteristic or attribute.