The Basic Idea of the Fiscal Multiplier Is That an Initial

question 32

Multiple Choice

The basic idea of the fiscal multiplier is that an initial increase in government spending will have a:

• A) more than a one- to- one impact on short run aggregate supply.
• B) more than a one- to- one impact on aggregate demand.
• C) more than a one- to- one impact on long run aggregate supply.
• D) more than a one- to- one impact on the budget deficit.

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