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:

Bribery Provisions

Legal rules or clauses that deal with the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in charge of a public or legal duty.

Grease Payments

Small sums of money given to minor officials to expedite or ensure the performance of routine or necessary actions.

Cease and Desist Orders

Legal orders issued by a government agency or court directing a person or entity to stop engaging in a certain activity or behavior.

Administrative Law Judge

An official who presides over hearings and disputes involving government agencies, making decisions based on administrative law.