Consider a Simple Macro Model with a Constant Price Level

question 81

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.If the simple multiplier is 3 and there is a $2 billion increase in autonomous investment spending,then the equilibrium level of income will increase by

• A)$1.2 billion.
• B)$2 billion
• C)$3 billion.
• D)$4.5 billion.
• E)$6 billion.

---

Definitions:

Secondary Data

Information that has been previously collected by others for different purposes but is being utilized by researchers for a new study.

Seasonal Variations

Refers to fluctuations in business activity, sales, or demand that recur with the changing seasons of the year.

Consumer Spending

Consumer spending is the total amount of money spent by households and individuals on goods and services, reflecting the economic activity and health of a nation or region.

Proprietary Databases

Exclusive databases owned by an organization that contain information not available to the public or competitors, often used for competitive advantage.