In an Economy, the Multiplier Is 3

question 420

Multiple Choice

In an economy, the multiplier is 3. If government expenditure increases by $1 million, then in the short run, the price level _________and real GDP_________ $3 million.

• A) rises; equals
• B) rises; increases by less than
• C) rises; decreases by less than
• D) falls; decreases by less than

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Definitions:

International Commuters

Individuals who travel across national borders for work purposes regularly but maintain their residence in their home country.

Host Country

The country in which a company that is based in another country operates, especially through subsidiaries or branches.

Cross-cultural Adjustment

The process individuals undergo to adapt to new cultural environments, particularly in international relocations or assignments.

Stress-management Skills

Techniques and strategies that individuals use to control and reduce stress in personal and professional contexts.