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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Definitions:

Job Sharing Plans

An employment arrangement where two or more individuals share the responsibilities of a single full-time job, splitting the hours, benefits, and duties between them.

Compensation

Amount employees are paid in money and benefits.

Salary

Pay calculated on a periodic basis, such as weekly or monthly.

Wage

The monetary compensation paid by an employer to an employee in exchange for work done.