The ratio of the change in GDP to an initial change in aggregate spending is the:
a. spending multiplier.
b. permanent income rate.
c. marginal expenditure rate.
d. marginal propensity to consume.
a
Economics
You might also like to view...
Economists assume consumers select a bundle of goods that maximizes their well-being subject to
A) their budget constraint. B) their income. C) relative prices. D) their marginal rate of substitution.
Economics
If the market for labor is perfectly competitive, the profit maximizing level of labor occurs where
A) MRPL < W (the wage). B) MRPL = P (the output price). C) MRPL just exceeds W. D) MRPL = W. E) none of the above
Economics