Suppose that business executives are very optimistic, and they raise their investment spending. What happens to the expenditure line? How will this affect real GDP? The expenditure line shifts up and real GDP increases by more than the amount of the shift. The expenditure line shifts up and real GDP decreases. The expenditure line shifts down and real GDP decreases by more than the amount of the shift. The expenditure line shifts down and real GDP increases.

Suppose that business executives are very optimistic, and they raise their investment spending. What happens to the expenditure line? How will this affect real GDP? The expenditure line shifts up and real GDP increases by more than the amount of the shift. The expenditure line shifts up and real GDP decreases. The expenditure line shifts down and real GDP decreases by more than the amount of the shift. The expenditure line shifts down and real GDP increases.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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