If an Increase in Aggregate Expenditures Results in No Increase

question 153

Multiple Choice

If an increase in aggregate expenditures results in no increase in real GDP, we can surmise that the

• A)economy is in a deep recession.
• B)MPC equals 1.
• C)economy is already operating at full employment.
• D)price level has fallen.

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Definitions:

Learning Time

The duration required to acquire new skills or knowledge.

Normal Random Variable

This variable is described by a distribution that has a graph in the shape of a bell curve, indicating its probability density function is symmetrical around its mean.

Standard Deviation

The statistic that quantifies the dispersion of a set of data points around their mean; it measures how spread out the values in the dataset are.

Percentile

A measure used in statistics indicating the value below which a given percentage of observations in a group of observations fall.