The Simple Multiplier Applies to Short-Run Situations in Which the Price

question 94

Multiple Choice

The simple multiplier applies to short-run situations in which the price level is constant.The simple multiplier can be defined as

• A)national income divided by aggregate expenditure.
• B)the change in equilibrium national income divided by the initial change in autonomous expenditure that brought it about.
• C)the change in national income resulting from a change in expenditure,multiplied by the number of years since the initial change.
• D)a change in aggregate expenditures multiplied by the equilibrium level of national income.
• E)the change in national income resulting from a change in saving.

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Definitions:

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