If Prices Are Fixed, an Increase in Aggregate Expenditures Results

question 426

Multiple Choice

If prices are fixed, an increase in aggregate expenditures results in an increase in equilibrium GDP that

• A) is greater than the change in aggregate expenditure.
• B) is equal to the change in aggregate expenditure.
• C) is less than the change in aggregate expenditure.
• D) has no necessary relationship to the size of the change in aggregate expenditure.

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Definitions:

Contraries

Things or propositions that are opposite in nature, characteristic, or definition.

Universal

Including, relating to, or affecting all members of the class or group under consideration.

Particular

Referring to a specific detail or instance among general examples.

Associative Play

A stage of play in child development where children play together, sharing materials and ideas, but not necessarily working towards a common goal.