An Increase in Aggregate Expenditure Has What Result on Equilibrium

question 100

Multiple Choice

An increase in aggregate expenditure has what result on equilibrium GDP?

• A)Equilibrium GDP rises.
• B)Equilibrium GDP is not affected by a decrease in aggregate expenditure.
• C)Equilibrium GDP falls.
• D)Equilibrium GDP may rise or fall depending on the size of the decrease in aggregate expenditure relative to the initial level of GDP.

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Definitions:

Legal Title

The formal right of ownership of property, recognized and protected by law.

Forecloses

The legal process by which a lender takes possession of a property when the borrower fails to keep up with mortgage payments.

Deficiency

The lack or shortage of something, typically a necessary quantity or quality.

Liable for Payment

Being legally responsible for the settlement of a debt or financial obligation, typically as a consequence of a contract or law.