Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. Suppose government purchases rise by $100. As a result, A) the aggregate expenditures curve shifts upward by $100. B) there is a movement along the aggregate expenditures curve from $1,600 to $1,700. C) the aggregate expenditures curve shifts upward by $100 $\times$ the multiplier. D) there is a movement along the aggregate expenditures curve from $1,600 to an amount equal to [$1,600 + ($100 $\times$ the multiplier)].

Question

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The Answer of Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. Suppose government purchases rise by $100. As a result, A) the aggregate expenditures curve shifts upward by $100. B) there is a movement along the aggregate expenditures curve from $1,600 to $1,700. C) the aggregate expenditures curve shifts upward by $100 $\times$ the multiplier. D) there is a movement along the aggregate expenditures curve from $1,600 to an amount equal to [$1,600 + ($100 $\times$ the multiplier)].

Figure 13-6 -Refer to Figure 13-6 ×\times× The Multiplier ×\times× The Multiplier)]

Figure 13-6
-Refer to Figure 13-6 $\times$ The Multiplier $\times$ The Multiplier)]