When the equilibrium price level adjusts to an increase in autonomous investment spending, the impact of the multiplier effect resulting from that spending increase
A) will increase nominal GDP by an amount smaller than the multiplier effect would indicate.
B) is only felt when there are changes in consumption.
C) will increase real GDP by an amount smaller than the multiplier effect would indicate.
D) will have no impact on the real GDP.
C
Economics
You might also like to view...
Which of the following is a nonrenewable resource?
A) residential land B) sunshine C) a machine tool D) oil
Economics
Over the past several decades, technological change has led to a significant amount of consolidation in the U.S. brewing industry
Indicate whether the statement is true or false
Economics