In a Simple Macro Model with Demand- Determined Output, the Simple

question 40

Multiple Choice

In a simple macro model with demand- determined output, the simple multiplier is equal to 1/(1- z) , where z equals the

• A)average propensity not to spend.
• B)level of autonomous expenditure.
• C)marginal propensity not to spend.
• D)average propensity to spend.
• E)marginal propensity to spend.

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Definitions:

Centre-Periphery Trade

Economic exchanges between a core or economically dominant region and its surrounding, less developed areas or countries.

Global Markets

represent the worldwide expanse of buyers, sellers, and exchange processes, transcending domestic economies and facilitating cross-border trade.

Glocalization

A strategy that involves adapting a product, service, or content to suit local tastes and cultures while maintaining an overarching global appeal.

Centre-Periphery Trade

The exchange of goods and services between central, more economically developed areas and peripheral, less developed areas, influencing economic dynamics.