Refer to the information provided in Figure 23.12 below to answer the question(s) that follow.
Figure 23.12Refer to Figure 23.12. Suppose the economy's aggregate expenditure line is AE2. A $10 million increase in planned investment causes aggregate equilibrium output to increase to
A. $1,440.5 million.
B. $1,510 million.
C. $1,516.7 million.
D. $1,525 million.
Answer: C
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Over the last several years, the earnings gap between workers with college degrees and workers with high school degrees has
a. remained roughly constant for both men and women. b. widened for both men and women. c. widened for men and narrowed for women. d. narrowed for men and widened for women.
Consider an unregulated monopoly in Figure 8.13. If that monopoly sets its price equal to its marginal cost, it would:
A. earn negative profits. B. earn maximum profits. C. earn zero profits. D. earn small, but greater than zero, profits.
When policymakers base their actions on a rule there is
A. rationalization policymaking. B. active policymaking. C. rational expectations policymaking. D. passive policymaking.
A firm that is earning positive profits in the short run has an incentive to ________ its scale of operation in the long run.
A. expand B. not change C. contract D. encourage another firm to expand