The Expenditure Multipliers Occur Because

question 109

Multiple Choice

The expenditure multipliers occur because

• A)a change in autonomous expenditure causes real GDP to change in the opposite direction.
• B)government expenditure on goods and services change by an amount proportional to government taxes.
• C)a change in households' incomes changes autonomous expenditure.
• D)any change in real GDP must also change the price level.
• E)a change in autonomous expenditures changes households' incomes.

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Definitions:

Reportable

Referring to information or events that must be disclosed or reported according to regulatory, legal, or professional requirements.

Major Customer

A key client that significantly contributes to a company's revenue, often having a major impact on its financial health.

Revenue Generated

The total amount of income produced through the primary activities of a business before any expenses are deducted.

Profit or Loss Test

A criterion used to evaluate the performance of an investment or business segment by determining if it is generating profit or incurring loss.