Consider the Following Information for an Economy with Demand-Determined Output

question 72

Multiple Choice

Consider the following information for an economy with demand-determined output and a constant price level.There is no government or foreign trade. TABLE 21-8 Refer to Table 21-8.The simple multiplier in this economy is

• A)2.0.
• B)2.5.
• C)3.0.
• D)4.0.
• E)5.0.

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Definitions:

Ground Water

Underground water stored in soil or within rock pores and cracks.

Hydraulic Gradient

The slope of the water table or potentiometric surface, indicating the direction and rate of groundwater flow.

Limestone Cave

A natural underground space formed by the dissolution of limestone rock by water.

Water Table

The level below which the ground is saturated with water, marking the boundary between the soil surface and groundwater.