Suppose Aggregate Output Is Demand-Determined

question 50

Multiple Choice

Suppose aggregate output is demand-determined.Suppose a decrease in autonomous investment expenditure of $20 million reduces equilibrium national income by $50 million.The simple multiplier is equal to

• A)-2.5.
• B)-0.6.
• C)0.4.
• D)0.6.
• E)2.5.

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Definitions:

Patents

Legal documents granting an inventor exclusive rights to their invention, preventing others from making, using, or selling the invention for a certain period of time.

Pharmaceutical Companies

Organizations dedicated to developing, producing, and marketing drugs or pharmaceuticals licensed for use as medications.

Monopoly Position

A situation in which a single company or entity has exclusive control over a particular market or industry, eliminating competition.

Lower Prices

A decrease in the general level of prices of goods and services, making them more affordable to consumers.