A $500 Increase in Investment Will Shift the Aggregate Expenditures

question 75

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.

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