Consider the Simplest Macro Model with Demand- Determined Output

question 40

Multiple Choice

Consider the simplest macro model with demand- determined output. Other things being equal, the the value of the simple multiplier, the stable is real GDP in response to shocks to autonomous spending

• A)smaller; less
• B)larger; less
• C)smaller; more
• D)both B and C are correct
• E)larger; more

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Definitions:

Noncash Assets

Assets that cannot be easily converted into cash, such as property, equipment, and investments.

Liquidated

The process of converting assets into cash or cash equivalents by selling them on the open market.

Personal Assets

Assets owned by an individual, including both tangible items like real estate and cars, and intangible items like investments and patents.

Income and Loss Sharing

A method often used in partnership agreements where profits and losses are distributed among partners according to pre-agreed proportions.