Suppose That the Slope of the AE Curve Is 0

question 346

Multiple Choice

Suppose that the slope of the AE curve is 0.80. Then an increase of investment of $10 billion leads to an increase in equilibrium real GDP equal to

• A) $8.0 billion.
• B) $10.0 billion.
• C) $12.5 billion.
• D) $50.0 billion.

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Definitions:

Generation Y

Also known as Millennials, refers to the cohort of individuals born approximately between 1981 and 1996, known for their familiarity with digital technology and media.

Baby Boomers

A demographic group born during the post-World War II baby boom, approximately between the years 1946 and 1964.

Adultcentrism

The assumption that only adults can make substantial contributions to society.

Adultism

Refers to bias toward adults that often results in discrimination against youth.