During 2010, a country reported that its real GDP increased by $3.0 billion.If the slope of its aggregate planned expenditure curve is 0.9, then which of the following might have lead to the increase in real GDP?
A) exports decreased by $0.3 billion
B) exports increased by $0.3 billion
C) imports increased by $0.3 billion
D) government expenditure on goods and services increased by $3 billion
E) investment decreased by $0.3 billion

Question

Quizplus · Accepted Answer

An increase in exports by $0.3 billion, with a multiplier effect due to the slope of 0.9, could lead to a significant increase in real GDP.

During 2010, a Country Reported That Its Real GDP Increased