If Real GDP Increases from $2,000 to $2,500 and Aggregate

question 171

Multiple Choice

If real GDP increases from $2,000 to $2,500 and aggregate expenditures increase from $1,900 to $2,200, the slope of the aggregate expenditures curve is

• A) 0.6.
• B) 0.7.
• C) 0.8.
• D) 0.9.

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Definitions:

Finished Product

A finished product is a fully manufactured item ready for sale or use, having gone through all stages of production.

Quantity Produced

The total number of units of a product made by a business within a specific period.

Inputs

All the resources that go into a business.

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs to a production process for manufacturing, finishing, or fabrication.