The expenditure multipliers occur because
A) any change in real GDP must also change the price level.
B) a change in households' incomes changes autonomous expenditure.
C) government expenditure on goods and services change by a proportional amount to government taxes.
D) a change in autonomous expenditures changes households' incomes.
E) a change in autonomous expenditure causes real GDP to change in the opposite direction.
D
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Taken collectively, people in nations that engage in international trade are not likely to:
A) consume more than they were able to consume in the absence of trade. B) increase their standards of living. C) gain from lower opportunity costs of production. D) be made worse off.
Household production increases when there is a stronger desire to avoid taxation
a. True b. False