Suppose the economy is at full employment, the price level is 100, and the multiplier is 2. CHANGE: Investment increases by $100 billion.

Suppose the economy is at full employment, the price level is 100, and the multiplier is 2.

CHANGE:

Investment increases by $100 billion.

a) What is the change in equilibrium expenditure if the price level remains at 100?

b) What is the immediate change in the quantity of real GDP demanded?

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