Which of the following correctly describes the spending multiplier?
A. The initial change in consumption, investment, government spending, or net exports divided by the change in equilibrium GDP.
B. An initial increase in aggregate expenditures divided by the equilibrium GDP.
C. An initial increase in aggregate expenditures divided by the change in equilibrium GDP.
D. The ratio of the change in real GDP to an initial change in any component of aggregate expenditures.
Answer: D
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The table above shows the production possibilities for an economy
Drawing a PPF with books on the vertical axis and bread on the horizontal axis, a movement from possibility B to possibility C to possibility D shows the opportunity cost of ________ moving down along the PPF. A) books decreasing B) bread decreasing C) bread increases D) books is constant E) books and bread are both increasing
Why is urban giantism less prevalent in mature democracies?
What will be an ideal response?