Suppose that investment decreases by $15 billion. If the multiplier is 2, and the short-run aggregate supply curve is positively sloped. In the short run, equilibrium real GDP
A)decreases by $30 billion.
B)decreases by more than $30 billion.
C)decreases by less than $30 billion.
D)increases by less than $30 billion.
E)does not change.

Question

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The Answer of Suppose that investment decreases by $15 billion. If the multiplier is 2, and the short-run aggregate supply curve is positively sloped. In the short run, equilibrium real GDP
A)decreases by $30 billion.
B)decreases by more than $30 billion.
C)decreases by less than $30 billion.
D)increases by less than $30 billion.
E)does not change.

Suppose That Investment Decreases by $15 Billion