Answered: aggregate expenditure line is AE 1. A…

aggregate expenditure line is AE 1. A $10 million increase in planned investment causes aggregate equilibrium output to increase to

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.1P

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Question

AE2
AE,
AE3
1,000
B
600
270
45
A 1,000 1,500
Aggregate output ($ millions)
Figure 8.12
Refer to Figure 8.12. Suppose the economy's
aggregate expenditure line is AE 1. A $10 million
increase in planned investment causes aggregate
equilibrium output to increase to
Select one:
a. $1,215.6 million.
b. $1,010.0 million.
c. $1,016.7 million.
d. $1,125.5 million.
Aggregate expenditures
($ millions)

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