Which of the Following Best Describes the Simple Spending Multiplier

question 38

Multiple Choice

Which of the following best describes the simple spending multiplier?

• A)It shows the magnified change in planned aggregate spending that arises from a change in output.
• B)It shows the magnified change in equilibrium output demanded that arises from a change in income.
• C)It shows the magnified change in planned aggregate spending that arises from a change in equilibrium output.
• D)It shows the magnified change in equilibrium output demanded that arises from a given initial change in planned aggregate spending.
• E)It shows the change in planned aggregate spending that arises from a change in real output.

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Definitions:

Negative Punishment

Negative punishment involves removing a desirable stimulus to reduce the likelihood of a particular behavior being repeated.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to a learned response.

Instinct

A natural and usually unchanging behavior pattern exhibited by animals when they encounter specific triggers.

Conditioned

Describes a response that has been learned through the process of conditioning, where a neutral stimulus becomes associated with a meaningful stimulus, eliciting a learned response.