Consider a Simple Macro Model with Demand-Determined Output

question 2

Multiple Choice

Consider a simple macro model with demand-determined output.In such a model,the multiplier is larger,the

• A)higher the level of autonomous expenditures.
• B)steeper is the AE function.
• C)flatter is the AE function.
• D)lower the APC.
• E)lower the level of autonomous expenditures.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to supply goods for and the actual amount received from selling those goods.

Government Payments

Financial transfers made by the government to individuals, businesses, or other governments, often as part of welfare, subsidy programs, or for procurement of services and goods.

Market Units

Denotes the standardized quantities or measures used to specify transactions in a particular market.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount that they actually pay.