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:

Primary Mental Abilities

Fundamental skills and cognitive functions such as reasoning, memory, and perception that are considered essential for intelligence.

Inductive Reasoning

A rational procedure where several assumed or generally true statements are merged together to derive a particular outcome.

Word Fluency

The ability to rapidly retrieve words from memory, often tested by asking individuals to produce as many words as possible from a category in a limited time.

Fluid Intelligence

The aspect of intelligence involved in the ability to think abstractly, reason quickly, and solve problems in novel situations, independent of acquired knowledge.