The Expenditure Multiplier Occurs Because

question 128

Multiple Choice

The expenditure multiplier occurs 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 a proportional amount to government taxes.
• C) a change in autonomous expenditures changes households' incomes.
• D) any change in real GDP must also change the price level.
• E) a change in households' incomes changes autonomous expenditure.

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Definitions:

Pain Medication

Drugs used to relieve discomfort associated with disease, injury, or surgery, ranging from over-the-counter and prescription drugs to more specialized types of pain management.

Respiratory Depression

A decrease in the rate and depth of breathing, which can be life-threatening if severe.

Cognitive Impairment

A decline in mental functions such as memory, attention, and decision-making, which can be a temporary condition or part of a chronic disease.

Increased Psychosis

Refers to an escalation in symptoms of psychosis, which may include delusions, hallucinations, disorganized thinking, and impaired insight.