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Assume no imports, and each extra dollar of income (real GDP) leads to 0.75 of a dollar increase in aggregate expenditures. A $10 million increase
Assume no imports, and each extra dollar of income (real GDP) leads to 0.75 of a dollar increase in aggregate expenditures. A $10 million increase in autonomous investment will result in a $40 million increase in equilibrium real GDP. True, False, or Uncertain. Explain. Assume neither short-run aggregate supply nor aggregate demand is perfectly inelastic. The ASAD model predicts that if a country has seen an increase in ination, it has also seen an increase in real GDP. True, False, or Uncertain. Explain
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