The multiplier can be calculated by dividing:

a. The initial change in spending by the change in real GDP
b. One by one minus the marginal propensity to invest
c. The change in real GDP by the initial change in spending
d. One by one minus the marginal propensity to save

c. The change in real GDP by the initial change in spending

Economics

You might also like to view...

Identify the disadvantage of public goods

View
Economics

Events like war shift the long-run aggregate supply curve of an economy to the right

a. True b. False Indicate whether the statement is true or false

View
Economics