The Difference in the Influence of a Multiplier Between the Short

question 94

Multiple Choice

The difference in the influence of a multiplier between the short run and the long run is that

• A)the multiplier effect is larger in the long run.
• B)the multiplier effect is zero in the long run.
• C)the multiplier effect is zero in the short run.
• D)there is no multiplier effect in the short run.
• E)the multiplier effect depends on potential GDP in the long run.

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Definitions:

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