A $500 Increase in Investment Will Shift the Aggregate Expenditures

question 45

Multiple Choice

A $500 increase in investment will shift the aggregate expenditures curve up by:

• A)exactly $500 and will increase the equilibrium level of real GDP by exactly $500.
• B)exactly $500 and will increase the equilibrium level of real GDP by less than $500.
• C)exactly $500 and will increase the equilibrium level of real GDP by more than $500.
• D)more than $500 and will increase the equilibrium level of real GDP by more than $500.
• E)less than $500 and will increase the equilibrium level of real GDP by less than $500.

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