The slope of the AE curve is .80.What is the expenditure multiplier?
Everything else the same, by how much does equilibrium aggregate expenditure increase if
a. exports increase from $1.75 trillion to $2.25 trillion.
b. government expenditure on goods and services decrease from $2.0 trillion to $1.8 trillion.
c. investment increases from $1.2 trillion to $2.3 trillion.

Question

The slope of the AE curve is .80.What is the expenditure multiplier?
 Everything else the same, by how much does equilibrium aggregate expenditure increase if
a. exports increase from $1.75 trillion to $2.25 trillion.
b. government expenditure on goods and services decrease from $2.0 trillion to $1.8 trillion.
c. investment increases from $1.2 trillion to $2.3 trillion.

Quizplus · Accepted Answer

The Answer of The slope of the AE curve is .80.What is the expenditure multiplier?
 Everything else the same, by how much does equilibrium aggregate expenditure increase if
a. exports increase from $1.75 trillion to $2.25 trillion.
b. government expenditure on goods and services decrease from $2.0 trillion to $1.8 trillion.
c. investment increases from $1.2 trillion to $2.3 trillion.

The Slope of the AE Curve Is