The Simple Multiplier Applies to Short-Run Situations in Which the Price

question 94

Multiple Choice

The simple multiplier applies to short-run situations in which the price level is constant.The simple multiplier can be defined as

• A)national income divided by aggregate expenditure.
• B)the change in equilibrium national income divided by the initial change in autonomous expenditure that brought it about.
• C)the change in national income resulting from a change in expenditure,multiplied by the number of years since the initial change.
• D)a change in aggregate expenditures multiplied by the equilibrium level of national income.
• E)the change in national income resulting from a change in saving.

---

Definitions:

Collective Tasks

Activities or responsibilities that require the cooperative effort and participation of a group of individuals to achieve a common goal.

Personal Control

The perceived degree of influence an individual has over their environment and decisions affecting their life.

Perspective Clients

Potential customers who are viewed from a specific standpoint, often considering their needs and how a product or service can meet those needs.

Major Policy Changes

Substantial alterations in the rules or guidelines that govern an organization or society's operations.