The Idea of the Multiplier Is That a Change in ________

question 37

Multiple Choice

The idea of the multiplier is that a change in ________ expenditure changes real GDP,which then changes ________ expenditure.The change in total expenditure will be larger than the initial change in ________ expenditure.

• A)autonomous;induced;autonomous
• B)induced;induced;autonomous
• C)induced;autonomous;autonomous
• D)induced;autonomous;induced
• E)autonomous;induced;induced

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Definitions:

Legal System

A comprehensive system of rules and principles organized to regulate societal behaviors, enforced through institutions.

Common Law

A system of law based on judicial decisions and precedent rather than statutes.

Nongovernmental Organization

An independent organization that operates outside of government control, often focused on humanitarian, developmental, or environmental efforts.

Inventory Valuation

A method used to assign a monetary value to a business’s inventory, impacting the cost of goods sold and thus the profit.