Aggregate Expenditures Model and Macroeconomic Equilibrium

16. Deriving the Aggregate Expenditures Model / Aggregate Expenditures Model and Macroeconomic Equilibrium / Problem 2

Problem 2

If net exports decrease by \$5 billion and the multiplier is 3, what is the expected decrease in GDP?

\$20 billion

\$10 billion

\$15 billion

\$5 billion