Consider the Basic AD/AS Macro Model

question 50

Multiple Choice

Consider the basic AD/AS macro model. The simple multiplier is reflected by the

• A)downward movement along the AD curve in response to a change in autonomous expenditure.
• B)size of the rightward shift of the AD curve in response to a change in autonomous expenditure.
• C)horizontal distance between initial macroeconomic equilibrium and the new intersection of AD and AS in response to a change in autonomous expenditure.
• D)size of the downward shift of the AD curve in response to a rise in autonomous expenditure.
• E)upward movement along the AD curve in response to a change in autonomous expenditure.

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Definitions:

Hydrograph

A graph showing the change in the amount of flowing water (discharge) over time.

Steeper Slopes

Areas of land where the gradient is more inclined relative to the horizontal plane, increasing the rate of runoff.

Urbanization

Urbanization is the process by which towns and cities are formed and become larger as more people begin living and working in central areas.

Stream Discharge

A term indicating the quantity of water flowing in a stream or river at any given location and time, expressed typically in volume per time unit.