Multiple Choice
(Advanced analysis) Assume that the MPS is .33 in an economy that has an aggregate supply curve with a slope of 1.An increase in investment spending of $10 billion will shift the aggregate demand curve rightward by:
A) $30 billion and increase real GDP by $15 billion.
B) $30 billion and increase real GDP by $30 billion.
C) $10 billion and increase real GDP by $30 billion.
D) $10 billion and increase real GDP by $10 billion.
Correct Answer:

Verified
Correct Answer:
Verified
Q10: Which of the following would not shift
Q17: When aggregate demand declines, wage rates may
Q42: Graphically, demand-pull inflation is shown as a<br>A)rightward
Q94: The price level in the United States
Q95: The interest-rate effect is one of the
Q156: The aggregate demand curve is<br>A) vertical under
Q167: (Last Word) In response to the Great
Q217: A decrease in aggregate demand will cause
Q262: The aggregate expenditures model and the aggregate
Q317: The foreign purchases effect suggests that a