Author Question: For each one dollar increase in real GDP, aggregate planned expenditure A) increases by less than ... (Read 66 times)

a0266361136 · **on:** Jun 29, 2018

For each one dollar increase in real GDP, aggregate planned expenditure

A) increases by less than a dollar.
B) increases only if autonomous expenditure increases.
C) increases by one dollar.
D) increases by more than a dollar.
E) is unaffected.

Question 2

Suppose chickens and beef cattle are produced by different companies on different sites.

If bad weather causes an increase in the price of hay, a food eaten by beef cattle but not by chickens, the equilibrium price of beef will ________, and the equilibrium price of chicken will ________.
A) stay the same; increase
B) increase; decrease
C) decrease; increase
D) increase; increase
E) decrease; decrease