The Idea That New Spending Creates More New Spending Is

question 66

Multiple Choice

The idea that new spending creates more new spending is known as the _____ effect.

• A) crowding-out
• B) multiplier
• C) wealth
• D) interest rate

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Definitions:

GDP

Gross Domestic Product (GDP) is the total market value of all final goods and services produced within a country in a specified period.

Per Capita Real GDP

A measure of the average economic output per person, adjusted for inflation, in a given country.

GDP Deflator

An indicator for the pricing levels of all new, domestically produced, consumable goods and services within an economy.

Population

The total number of people living in a specific area or country at a given time.