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Economics. How does an increase in autonomous expenditure change real GDP in the short run? Does real GDP change by the Price level (GDP deflator,

Economics.

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How does an increase in autonomous expenditure change real GDP in the short run? Does real GDP change by the Price level (GDP deflator, 2007 = 100) same amount as the change in aggregate demand? Why or why not? 150 LAS Use the graph to answer these questions. AD, is the aggregate demand curve when investment is $1.0 trillion. 140- SAS Investment increases to $1.5 trillion, and the multiplier when the price level is constant is 8. 130- Draw the new aggregate demand curve and label it. Draw a point to indicate the quantity of real GDP demanded if the price level remains at 115, Label it 1 120- Draw a point at the new short-run equilibrium. Label it 2. 115 110- 100- ADo 90 #12 10 12 14 16 18 Real GDP (trillions of 2007 dollars)

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