Consider the Simple Multiplier When the Price Level Is Constant

question 99

Multiple Choice

Consider the simple multiplier when the price level is constant.We can say that national income is ________ and that the simple multiplier measures the horizontal shift in ________ in response to a change in autonomous desired expenditure.

• A)demand determined; the AS curve
• B)unit-cost determined; the AD curve
• C)constant; the AD curve
• D)demand determined; the AD curve
• E)constant; the AE curve

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Definitions:

Inverse Relationship

A correlation between two variables in which one variable increases as the other decreases, and vice versa.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together.

Statistical Measure

A quantifiable value representing a summary or characteristic of a set of data, used in analyzing or interpreting data.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many types of data where most scores fall near the mean, with fewer and fewer near the extremes.