-Suppose the Price Level Is Fixed

question 59

Multiple Choice

-Suppose the price level is fixed. If investment increases by $1 billion and the aggregate expenditure curve is shown in the figure above, in response equilibrium expenditure increases by ________.

• A)$3 billion
• B)$1 billion
• C)less than $1 billion
• D)None of the above answers is correct.

---

Definitions:

Pain Killers

Medications or substances used to reduce or relieve pain.

Inhalants

Substances that are sniffed or inhaled to achieve a quick high, often household or industrial chemicals.

Admitted

The act of conceding or acknowledging something, often used in the context of accepting individuals into medical or rehabilitative facilities.

Older

A term generally referring to individuals or things of greater age, often associated with increased wisdom or experience.