The Multiplier Is 5 And,as a Result of a Change

question 177

Multiple Choice

The multiplier is 5 and,as a result of a change in expenditure,equilibrium expenditure and real GDP change by $200 billion.What was the initial change in autonomous expenditure?

• A)$20 billion
• B)$40 billion
• C)$200 billion
• D)$1,000 billion
• E)$50 billion

---

Definitions:

Correlation

Correlation is a statistical measure that indicates the extent to which two or more variables fluctuate together.

Observational Studies

Research methods where the investigator observes subjects without manipulation, aiming to find correlations between variables.

Planetary Motion

The movement of planets around a star, such as the orbit of Earth and other planets around the Sun.

Proxy Variable

An auxiliary variable used in statistical analyses to represent an unobservable or difficult-to-measure variable.