The Expenditure Multiplier Concept of the Aggregate Expenditures Model

question 241

Multiple Choice

The expenditure multiplier concept of the aggregate expenditures model

• A) is not at all relevant in the AD-AS model.
• B) magnifies the shifts of the aggregate demand curve.
• C) explains movement up or down the aggregate demand curve.
• D) reverses the shift of the aggregate demand curve.

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Definitions:

Human Ecology

A theoretical approach to urban sociology that borrows ideas from biology and ecology to highlight the links between the physical and social dimensions of cities and identify the dynamics and patterns of urban growth.

Social Processes

Encompass the ways in which individuals and groups interact, change, and develop within a society.

Urban Populations

The demographic segment of people living in cities and towns, as opposed to rural areas, often associated with higher density of human structures and infrastructure.

Differentiation

In the theory of human ecology refers to the process by which urban populations and their activities become more complex and heterogeneous over time.