Exports decrease by $500 billion, investment increases by $300 billion, and government expenditure increases by $200 billion. As a result, autonomous expenditures ________ , total expenditures ________ , and equilibrium real GDP ________.
A) decreases by $300 billion; decreases; decreases by more than $300 billion
B) is unchanged; is unchanged; is unchanged
C) decreases by $200 billion; decreases; decreases by more than $200 billion
D) increases by $500 billion; increases; increases by more than $500 billion
E) increases by $3500 billion; increases; increases by more than $300 billion

Question

Quizplus · Accepted Answer

The Answer of Exports decrease by $500 billion, investment increases by $300 billion, and government expenditure increases by $200 billion. As a result, autonomous expenditures ________ , total expenditures ________ , and equilibrium real GDP ________.
A) decreases by $300 billion; decreases; decreases by more than $300 billion
B) is unchanged; is unchanged; is unchanged
C) decreases by $200 billion; decreases; decreases by more than $200 billion
D) increases by $500 billion; increases; increases by more than $500 billion
E) increases by $3500 billion; increases; increases by more than $300 billion

Exports Decrease by $500 Billion, Investment Increases by $300 Billion