The Multiplier Effect on Real GDP Occurs Because

question 89

Multiple Choice

The multiplier effect on real GDP occurs because

• A)of income taxes.
• B)an autonomous change in expenditure causes an induced change in consumption expenditure.
• C)changes in price levels affect our willingness to invest, consume, import and export.
• D)of government stabilisation policies.

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Definitions:

Resource Consumption

The use of resources (such as raw materials, energy, or labor) by a process, project, or activity, typically measured to manage efficiency and costs.

Activity-based Costing

A costing methodology that assigns costs to products or services based on the resources they consume.

First-stage Allocation

The initial process of assigning indirect costs to relevant cost objects or activities, typically in a cost accounting system.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate picture of the cost to produce a product or service.