List and Explain Factors That Determine the Size of the Multiplier

question 209

Essay

List and explain factors that determine the size of the multiplier in the aggregate expenditure model when prices are constant.

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Definitions:

Paid

An amount of money that has been given or transferred in exchange for goods, services, or to settle a debt.

Accrued Expense

Expenses that have been incurred but not yet paid or recorded through a standard accounting transaction, often recognized at the end of an accounting period.

Electric Bill

The cost incurred for the consumption of electricity by a household, business, or organization.

Paid

The process of disbursing money in exchange for goods or services, or the act of fulfilling an obligation such as a debt.