According to the aggregate expenditure model, when autonomous expenditure increases, equilibrium expenditure
A) increases by an equal amount.
B) does not change because autonomous expenditures has no effect on equilibrium expenditure.
C) does not change because only induced expenditures increase equilibrium expenditure.
D) increases by a smaller amount.
E) increases by a larger amount.
E
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Two companies, Dirty Inc. and Filthy Inc., each of which has access to 5 different production processes, each of which has a different cost and produces a different amount of pollution. The daily costs of the processes and the number of tons of smoke emitted are shown in the table below.Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Dirty Inc. ($/day) $110$200$380$740$1,460 Cost to Filthy Inc. ($/day) $400$430$490$580 $700If the City Council imposes a tax of $91 per day on each ton of smoke emitted, then what will be the total cost to society of the resulting reduction in pollution?
A. $180 B. $360 C. $90 D. $270
When the market demand increases in a perfect competition, the long-run result is a larger number of firms, a higher price, and a permanent economic profit for the firms
Indicate whether the statement is true or false
The main determinants of investment are the interest rates and expected profit
a. True b. False Indicate whether the statement is true or false
An investment has grown from $100.00 to $130.00 or by 30% over four years. What annual increase gives a 30% increase over four years?
A. 7.24% B. 6.30% C. 6.78% D. 7.50%