A $500 increase in investment will shift the aggregate expenditures curve up by:
A) exactly $500 and will increase the equilibrium level of real GDP by exactly $500.
B) exactly $500 and will increase the equilibrium level of real GDP by less than $500.
C) exactly $500 and will increase the equilibrium level of real GDP by more than $500.
D) more than $500 and will increase the equilibrium level of real GDP by more than $500.
E) less than $500 and will increase the equilibrium level of real GDP by less than $500.
Correct Answer:
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