An Increase in Aggregate Expenditure Has What Result on Equilibrium

question 80

Multiple Choice

An increase in aggregate expenditure has what result on 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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Definitions:

Communication

The exchange of information or expression of ideas, feelings, or instructions through various means including speech, writing, or behavior.

Analyze

The process of examining something methodically and in detail, typically to explain and interpret it.

Irregular Rates

Variations in frequency or amount that do not follow a consistent or predictable pattern.

Agreement

A mutual understanding or arrangement reached by two or more parties, usually formalized by a legal document.