Suppose the Price Level Is Constant, Output Is Demand- Determined

question 23

Multiple Choice

Suppose the price level is constant, output is demand- determined, and the economy is closed with no government. If the consumption function is C = (2/3) Y, then the simple multiplier is

• A)2/3.
• B)1.
• C)2.
• D)3.
• E)- insufficient information to know.

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Definitions:

Retrieval Context

The situation or environment in which information is recalled, which can influence the ease and accuracy of the retrieval process.

Testing Effect

The enhanced memory performance and retention that results from being tested on material versus only studying it.

Cognitive Effort

The amount of mental processing power required to understand, process, and react to information.

Retrieval Cues

Stimuli or prompts that facilitate the recall of information from memory.