An Example of the Multiplier Effect Is When

question 77

Multiple Choice

An example of the multiplier effect is when

• A) the government increases government spending initially by $100 billion,and total income in the economy increases by less than $100 billion.
• B) an increase in the price level leads to a shift in the aggregate demand curve.
• C) the government increases government spending initially by $100 billion,and total income in the economy increases by more than $100 billion.
• D) an increase in government spending leads to a decrease in private investment.
• E) short-run aggregate supply shifts in a response to fiscal policy.

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Definitions:

Trait Theory

A psychological perspective that focuses on the identification and measurement of consistent personality characteristics (traits) that vary among individuals.

Allport

Refers to Gordon Allport, a psychologist known for his theory of personality that emphasized the uniqueness of the individual and the concept of personal traits.

Personality

An individual's distinct and consistent patterns of feeling, thinking, and behaving.

Functional Autonomy

A concept introduced by psychologist Gordon Allport, suggesting that some behaviors might start with an external motive but become self-sustaining or autonomous over time.