When Government Spending Is Added to the Basic Macroeconomic Model

question 131

Multiple Choice

When government spending is added to the basic macroeconomic model, the multiplier for G would

• A)be higher than the multiplier for autonomous spending.
• B)be lower than the multiplier for autonomous spending.
• C)be equal to the multiplier for autonomous spending.
• D)have no relationship to the autonomous spending multiplier.

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Definitions:

Supply Chain

A network of organizations, people, activities, information, and resources involved in producing and delivering a product or service from supplier to customer.

Occupancy Cost

The total expense incurred for occupying a physical space, including rent, utilities, taxes, and maintenance.

Cycle Inventory

The portion of inventory that a business holds to meet its regular sales demand during a specific period.

Space Cost

Expenses related to the physical space required for operations, such as warehousing or retail locations.