The Multiplier Is the Ratio of the

question 177

Multiple Choice

The multiplier is the ratio of the

• A) equilibrium level of real GDP to the change in induced expenditures.
• B) change in induced expenditures to the change in autonomous expenditures.
• C) change in real GDP to the change in autonomous expenditures.
• D) change in autonomous expenditures to the change in real GDP.

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Definitions:

Environmental Factors

Various external conditions and influences that affect life, development, and survival of individuals and organizations.

Resource Allocation Theory

A theory that deals with how resources such as time, money, and effort are distributed among competing needs or interests.

Cognitive Resources

The mental capabilities and processes available to an individual for learning, problem-solving, and decision-making.

Attentional Resources

Attentional Resources refer to the finite cognitive capacities individuals have to process information, focus on tasks, and manage distractions.