Assume an Economy Is in Equilibrium at a Real GDP

question 66

Multiple Choice

Assume an economy is in equilibrium at a real GDP of $5 trillion.If aggregate expenditure (AE) increases by $1 trillion,the economy's equilibrium real GDP is likely to _____.

• A)increase by $1 trillion
• B)increase by more than $1 trillion
• C)increase by less than $1 trillion
• D)decrease by $1 trillion
• E)decrease by more than $1 trillion

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of data values, indicating how spread out the data points are from the mean.

Free Throw

An unopposed attempt to score in basketball, granted after a foul, from a designated line approximately 15 feet from the basket.

Mean

The average of a set of numbers, calculated by dividing the sum of all values by the number of values.

Standard Deviation

A technique for measuring the degree to which data points are spread out or varied.