The Multiplier Shows That as ________ Changes, Real GDP Changes

question 395

Multiple Choice

The multiplier shows that as ________ changes, real GDP changes by a ________ amount.

• A) induced expenditure; larger
• B) induced expenditure; smaller
• C) autonomous expenditure; larger
• D) autonomous expenditure; smaller

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Definitions:

Maturity

The date on which a loan or bond comes due and the principal must be repaid or the date upon which an investment reaches its full value.

Adjusting Entry

An accounting entry made at the end of a period to allocate income and expenditure to the correct accounting period.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, reflecting the net cash inflow that would be received if the goods were sold.

Bad Debt Expense

An expense reported on the income statement, representing the estimated amount of receivables that will not be collected.