Suppose the multiplier is 2 and the short-run aggregate supply curve is positively sloped. If investment increases by $10 billion, how does equilibrium real GDP change in the short run?

Question

Accepted Answer

It increases by less than $20 billion.

Answer

It does not change.

Answer

It decreases by less than $20 billion.

Answer

It increases by more than $20 billion.

Answer

It increases by $20 billion.

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Suppose the multiplier is 2 and the short-run aggregate supply curve is positive...

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