Which of the following financial investments is highly liquid and has very little risk but offers a low rate of return?

If the multiplier is 3, equilibrium real GDP is $1,000 billion, and investment is $400 billion, what will happen if investment decreases to $380 billion? Real GDP will:

a. increase to $1,020 billion. b. increase to $1,060 billion. c. decrease to $980 billion. d. decrease to $940 billion. e. decrease to $970 billion.

What happens to bring the AD–AS system back into equilibrium when prices are below the equilibrium level? Above the equilibrium level?

What will be an ideal response?