The Ratio of the Change in GDP to an Initial

question 40

Multiple Choice

The ratio of the change in GDP to an initial change in aggregate expenditures (AE) is the:

• A) spending multiplier.
• B) permanent income rate.
• C) marginal expenditure rate.
• D) marginal propensity to consume.

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Definitions:

Self-perception Theory

A theory suggesting that individuals infer their attitudes and feelings by observing their own behavior and the context in which it occurs.

Descriptive Norms

Social norms that describe what is commonly done in specific situations, guiding behavior by indicating what is considered normal or typical.

Injunctive Norms

Social rules that dictate what behaviors are typically approved or disapproved of within a community or society.

Norm Salience

Describes the degree to which social norms are noticeable or prominent to individuals in a given context, influencing their behavior.