Consider a Simple Macro Model with a Constant Price Level

question 31

Multiple Choice

Consider a simple macro model with a constant price level.If the AE function is horizontal,then we know the simple multiplier is

• A)less than zero.
• B)zero.
• C)between zero and one.
• D)exactly one.
• E)greater than one.

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Definitions:

Standard Deviation

A way to quantify how much spread or differentiation exists in a dataset.

Shopping Outlet

A retail store or distribution channel through which products are sold to consumers.

Hexatriene

An organic compound containing six carbon atoms connected by a linear chain of alternating single and double bonds.

Wavelength

The distance between successive crests of a wave, typically used in the context of electromagnetic radiation.