Suppose That the Slope of the AE Curve Is 0

question 346

Multiple Choice

Suppose that the slope of the AE curve is 0.80. Then an increase of investment of $10 billion leads to an increase in equilibrium real GDP equal to

• A) $8.0 billion.
• B) $10.0 billion.
• C) $12.5 billion.
• D) $50.0 billion.

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Definitions:

Responsibility

The state or obligation of being accountable or to blame for something, involving the duty to deal with something or of having control over someone.

Rights

Entitlements or freedoms that are granted to individuals, usually by law or social agreement, allowing them to perform certain actions without interference or oppression.

Abstract Concept

An idea or thought that is not associated with any specific instance or concrete object, often difficult to understand and communicate.

Emotional Intelligence

The ability to identify, understand, and manage one's own emotions and the emotions of others effectively.