Given That the Economy Is Operating in the Horizontal Section

question 73

Multiple Choice

Given that the economy is operating in the horizontal section of the aggregate supply curve in the simple Keynesian model,an increase in autonomous spending will ____________________,assuming that the economy remains in the horizontal section of the aggregate supply curve.

• A) increase Real GDP and raise the price level
• B) decrease Real GDP and raise the price level
• C) increase Real GDP and leave the price level unchanged
• D) increase Real GDP and lower the price level

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Definitions:

Socially Responsible

Acting with consideration for the ethical and environmental impact of one's business practices on society and the community.

Workplace Spirituality

An approach that integrates employees' spiritual needs with their work environment, promoting meaning, purpose, and community connection at work.

Spiritual Workplace

An organizational environment that recognizes and incorporates spiritual practices or values, enhancing employees' sense of purpose and well-being.

Variable Costs

Costs that vary directly with the level of production or output.