The Multiplier Effect on Real GDP Occurs Because

question 377

Multiple Choice

The multiplier effect on real GDP occurs because

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

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Definitions:

High Level

A term typically used to describe a position, status, or activity that is of greater importance, complexity, or abstraction.

Object Permanence

The concept that objects do not cease to exist merely because they are not currently perceived through sight, sound, or other sensory inputs.

Conservation

In cognitive development, the understanding that certain properties of objects remain the same despite changes in the object's outward appearance.

Stranger Anxiety

A form of distress that children experience when exposed to people they do not know, typically apparent from about 6 to 12 months of age.