The Expenditure Multiplier Concept of the Aggregate Expenditures Model

question 63

Multiple Choice

The expenditure multiplier concept of the aggregate expenditures model

• A)is not at all relevant in the AD-AS model.
• B)magnifies the shifts of the aggregate demand curve.
• C)explains movement up or down the aggregate demand curve.
• D)reverses the shift of the aggregate demand curve.

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Definitions:

Automatic Processing

A type of information processing that occurs without the need for conscious attention, enabling tasks to be performed without deliberation.

Memory Consolidation

The process by which the brain converts short-term memories into long-term memories, making them stable over time.

Mood-Congruent Memory

Refers to the tendency of individuals to remember information that is consistent with their current mood or emotional state.

Jealous

Feeling or showing envy towards someone because of their achievements or advantages.