Multiplier Effect Is the Additional Shifts in Aggregate Demand That

question 6

True/False

Multiplier effect is the additional shifts in aggregate demand that result when expansionary fiscal policy increases income and thereby increases consumer spending.

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Definitions:

Economic Resource

An asset, commodity, or service that can be used to produce goods and services and thereby contribute to an economy's output.

Free Resource

A resource that is abundantly available and not limited by price mechanisms or ownership, making it freely accessible to all.

Demand Curves

A graphical representation that shows the relationship between the quantity of a good consumers are willing to buy and its price.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.