Suppose That the Slope of the AE Curve Is 0

question 154

Multiple Choice

Suppose that the slope of the AE curve is 0.80. If prices remain constant and government expenditure increases by $10 billion, what will be the value of the change in real GDP?

• A) $8 billion
• B) $2 billion
• C) $10 billion
• D) $50 billion

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