Suppose the Slope of the Aggregate Expenditures Curve Is 0

question 143

Multiple Choice

Suppose the slope of the aggregate expenditures curve is 0.75. An increase in autonomous investment expenditure of $6 billion would produce an ultimate increase in equilibrium real GDP of

• A) $0.25 billion.
• B) $6 billion.
• C) $12 billion.
• D) $24 billion.

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Definitions:

External Search

An information gathering process from outside sources before making a purchase decision.

Wrong Purchase Decision

A situation where a consumer regrets their buying choice, often due to misinformation, impulse buying, or unmet expectations.

Frequent Purchase

The repeated buying of goods or services on a regular basis, often indicative of customer loyalty or habitual behavior.

Personal Use

Utilization of products or services for individual needs rather than for business or commercial purposes.