If the Expenditure Multiplier Is 5,the Slope of the Aggregate

question 153

Multiple Choice

If the expenditure multiplier is 5,the slope of the aggregate expenditure (AE) curve is

• A)0.8.
• B)0.7.
• C)0.5.
• D)0.6.
• E)0.2.

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Definitions:

Equilibrium World Price

The price of a good at which the quantity supplied and quantity demanded are equal in the global market.

Domestic Quantity Supplied

The total amount of a product that producers in a country are willing and able to sell at a given price level, within the domestic market.

Domestic Quantity Demanded

The aggregate quantity of a product or service that buyers in a particular nation are ready and capable of buying at a certain price.

Hypothetical Nations

Imaginary or theoretical countries used for the purpose of discussion, analysis, or study in various contexts.