Refer to the Diagram

question 43

Multiple Choice

Refer to the diagram. The sizes of the multipliers associated with changes in investment and government spending in this economy are

• A) 2.5 and 1.5, respectively.
• B) 3 and 2, respectively.
• C) both 2.5.
• D) 2 and 3, respectively.

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Definitions:

First Year

The initial period of 12 months from the start of an event, activity, or establishment.

Business Plan

A document that outlines a company's goals, strategies, target market, and financial forecasts, serving as a road map for startup and growth.

Entrepreneur

An individual who starts, organizes, manages, and assumes the risks of a business or enterprise.

Small Companies

Organizations with a limited number of employees and revenue, often characterized by a narrow market focus.