In the Long Run, the Multiplier

question 49

Multiple Choice

In the long run, the multiplier

• A)has a larger effect on real GDP than it has in the short run, because the multiplier effect has a longer time period to exert its impact on the economy.
• B)has a larger effect on real GDP than it has in the short run, because there are more induced expenditures in the long run.
• C)has a larger effect on real GDP than it has in the short run because of changes in the price level.
• D)has a smaller effect on real GDP than it has in the short run because of changes in the price level.
• E)can have a smaller or larger effect on real GDP than it has in the short run.

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Definitions:

Monozygotic Twins

Twins that are genetically identical because they were formed from a single fertilized egg that split into two.

Biologic Brothers

Male siblings who share the same biological parents.

Family History

Information about diseases or health conditions present in a person's relatives, which can be significant for assessing genetic risks.

Early Development

The initial stages of growth and development in humans and other organisms, often focusing on the prenatal, infancy, and early childhood periods, crucial for physical, cognitive, and emotional health.