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:

Volvo

An automotive manufacturer known for its emphasis on safety features, durability, and innovative technology in its vehicle designs.

Implementation Phase

The stage in a project or strategy where plans are put into action and executed to achieve the intended objectives.

R and D

Research and Development, a business or government activity that involves the investment of resources in gaining new knowledge and creating new products or processes.

Implementation Phase

The stage in a project, plan, or strategy where plans are put into action or executed.