The Simple Multiplier Applies to Short- Run Situations in Which

question 73

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

---

Definitions:

Heredity

The genetic transmission of characteristics from parents to offspring, influencing various traits and predispositions.

Intelligence

The ability to learn, understand, and make judgments or have opinions that are based on reason.

Personality Traits

Enduring characteristics that describe an individual's behavior and attitude.

Agreeableness

One of the five major personality traits, indicating an individual's propensity towards cooperation, compassion, and social harmony.