The Slope of the AE Curve Is

question 194

Essay

The slope of the AE curve is .80. What is the multiplier? Everything else the same, by how much does equilibrium aggregate expenditure increase if
a) exports increase from $1.75 trillion to $2.25 trillion.
b) government expenditure on goods and services decrease from $2.0 trillion to $1.8 trillion.
c) investment increases from $1.2 trillion to $2.3 trillion.

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Definitions:

Timber Output

Refers to the production volume of timber, including both raw and processed wood materials.

Regional Rail

A passenger rail service that operates between different regions within a country, offering medium to long-distance travel options.

Annual

Occurring once every year.

Plains Droughts

Long periods of abnormally low rainfall, especially prevalent in the Great Plains of the United States, leading to severe water shortages and agricultural difficulties.