The cost of producing an additional unit of a good or service that falls on people other than the producer of that good or service is the

Sometimes the response to price signals, rather than the signals themselves, may be flawed.

Answer the following statement true (T) or false (F)

If the multiplier is greater than 1 an initial (autonomous) decrease in aggregate demand will be

A. Equal to the eventual decline in spending. B. Offset by an increase in planned investment. C. Much larger than the eventual decline in spending. D. Much smaller than the eventual decline in spending.