Consider a Simple Macro Model with Demand- Determined Output

question 75

Multiple Choice

Consider a simple macro model with demand- determined output. In such a model, the multiplier is larger, the

• A)lower the APC.
• B)flatter the slope of the AE function.
• C)higher the level of autonomous expenditures.
• D)lower the level of autonomous expenditures.
• E)steeper the slope of the AE function.

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Definitions:

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers, usually downward sloping.

Marginal Cost

The cost increase associated with producing an additional unit of a product or service.

Mineral Water

Water that contains various minerals and is often considered beneficial for health, sourced from springs or wells.

Monopoly

A market structure characterized by the absence of competition, where a single company or entity has exclusive control over a particular product or service.