The Multiplier Is Given by

question 31

Multiple Choice

The multiplier is given by

• A) the ratio of the initial change in a component of aggregate demand to the change in the quantity of real GDP demanded at each price level.
• B) the ratio of the change in the quantity of real GDP demanded at each price level to the initial change in a component of aggregate demand that produced it.
• C) the amount by which the quantity of real GDP demanded at each price level changes in response to an initial change in a component of aggregate demand.
• D) the percentage change between the initial change in a component of aggregate demand and the final change in the quantity of real GDP demanded at each price level.

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