If the price level is fixed and autonomous expenditures rise by $40, then the multiplier model would predict that the aggregate demand curve would:__________

Question

asked Feb 21, 2021 197k views

1 Answer

Robert Klemme · Answer 1 · 2021-02-27T07:35:30+0000

Answer: shift out by more than $40 if the mpe is between 0 and 1

Step-by-step explanation:

If the price level is fixed and autonomous expenditures rise by $40, then the multiplier model would predict that the aggregate demand curve would:

SHIFT OUT BY MORE THAN $40 IF THE MPE IS BETWEEN 0 AND 1