For Each One Dollar Increase in Real GDP, Aggregate Planned

question 13

Multiple Choice

For each one dollar increase in real GDP, aggregate planned expenditure

• A)increases by less than a dollar.
• B)is unaffected.
• C)increases by one dollar.
• D)increases only if autonomous expenditure increases.
• E)increases by more than a dollar.

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Definitions:

Normal Good

A good for which demand increases when consumer income rises, and falls when consumer income decreases.

Complementary Goods

Products or services that are typically consumed together because the use of one enhances the use of the other.

Raclette Cheese

Raclette Cheese is a semi-hard cheese from Switzerland, known for its melting qualities and typically used in the dish also called Raclette, where the cheese is heated and scraped onto dishes.

New Potatoes

Young potatoes that have been harvested early in the season, known for their thin skins and tender texture.