An Increase in Aggregate Expenditure Has What Effect on the Equilibrium

question 97

Multiple Choice

An increase in aggregate expenditure has what effect on the equilibrium GDP?

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

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Primary Research Method

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