Increases in Autonomous Expenditure Induce ________ in Aggregate Expenditure Thereby

question 78

Multiple Choice

Increases in autonomous expenditure induce ________ in aggregate expenditure thereby making the multiplier ________.

• A) a decrease; less than one
• B) further increases; less than one
• C) further increases; greater than one
• D) further increases; unnecessary
• E) a decrease; greater than one

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Definitions:

GDP Deflator

An index that measures the prices of all new, domestically manufactured, final goods and services in a country's economy.

Ghent Altarpiece

A highly detailed polyptych altarpiece by Hubert and Jan van Eyck, renowned for its sophisticated technique and symbolism.

Hubert

Likely a reference to Hubert van Eyck, an Early Netherlandish painter and older brother of Jan van Eyck, thought to be a master of oil painting technique and detailed landscapes.

Jan Van Eyck

A Flemish painter active in the 15th century, known for his detailed portraiture and use of oil paint, contributing significantly to the Northern Renaissance.