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:

Consequences

Outcomes or results that follow an action or decision, potentially having positive or negative effects.

Response Rate

The frequency at which a specific response or behavior occurs, often measured in operant conditioning studies.

Self-Administering Satiation

A technique where an individual repeatedly exposes themselves to a stimulus that initially elicites a strong desire, with the aim of reducing the intensity of that desire over time.

Bad Habits

Repetitive behaviors that are detrimental to one's health or wellbeing, often challenging to change.