Consider the Basic AD/AS Model in the Short Run

question 51

Multiple Choice

Consider the basic AD/AS model in the short run. When there is a change in autonomous desired expenditure, the simple multiplier is equal to the

• A)ratio of the vertical shift of the AD curve to the change in autonomous expenditure.
• B)product of the horizontal shift of the AD curve times the change in autonomous expenditure.
• C)product of the vertical movement along the AD curve times the change in autonomous expenditure.
• D)ratio of the vertical movement along the AD curve to the change in autonomous expenditure.
• E)ratio of the horizontal shift of the AD curve to the change in autonomous expenditure.

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Definitions:

Vroom, Yetton, and Jago

Researchers known for their decision-making model that focuses on varying leadership styles and the importance of situational factors in decision-making processes.

Authority decisions

Decisions made by individuals or bodies who hold power or authority in an organization or group.

Individual decisions

Choices or judgments made by a single person based on personal judgment, beliefs, and attitudes.

Consultative

A leadership or decision-making style that involves seeking input or feedback from others before making a final decision.