Consider the Simplest Macro Model with Demand-Determined Output

question 52

Multiple Choice

Consider the simplest macro model with demand-determined output.Other things being equal,the ________ the value of the simple multiplier,the ________ stable is real GDP in response to shocks to autonomous spending.

• A)larger; more
• B)larger; less
• C)smaller; more
• D)smaller; less
• E)both B and C are correct

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Definitions:

Hydrotherapy

The use of water in the treatment of different conditions, including arthritis and related rheumatic complaints, through exercises and baths.

Fluidotherapy

A technique for stimulating healing, particularly in the hands and feet, by placing the affected body part in a container of glass beads that are heated and agitated with hot air.

Whirlpool

A rapidly rotating mass of water in a river or sea into which objects may be drawn, typically caused by the meeting of conflicting currents.

Thermotherapy

The application of heat to the body to treat a disorder or injury.