The Actual Multiplier for the U

question 59

Multiple Choice

The actual multiplier for the U.S.economy is estimated to be

• A)about 10.
• B)approximately 5.
• C)between 3 and 4.
• D)less than 2.

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Definitions:

Elasticity of Demand

An indicator of the variation in the amount of a good or service desired with respect to its price fluctuation.

Slightly Inelastic

Describes demand or supply that is only marginally responsive to changes in price, with the quantity demanded or supplied changing by a smaller percentage than the price change.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Supply

The total amount of a product or service available for purchase at any given price level in a given market.