The Multiplier Is the Amount by Which ________ Is Multiplied

question 33

Multiple Choice

The multiplier is the amount by which ________ is multiplied to determine ________.

• A) autonomous expenditure; real GDP
• B) induced expenditure; real GDP
• C) a change in autonomous expenditure; the change in equilibrium expenditure
• D) a change in induced expenditure; the change in equilibrium expenditure

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Definitions:

Price

The amount of money expected, required, or given in exchange for something else; a fundamental economic concept that represents the value of a good or service.

Excess Demand

A situation in a market where the quantity demanded of a product exceeds the quantity supplied at a given price, leading to upward pressure on prices.

Sunglasses

Sunglasses are eyewear designed to protect the eyes from the harmful rays of the sun and reduce glare, while often serving as a fashion accessory.

Supply

The total amount of a good or service that is available to consumers.