If the Expenditure Multiplier Is 5, the Slope of the Aggregate

question 231

Multiple Choice

If the expenditure multiplier is 5, the slope of the aggregate expenditure (AE) curve is

• A) 0.5.
• B) 0.6.
• C) 0.7.
• D) 0.8.
• E) 0.2.

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Definitions:

Seasonally Adjusted

A statistical technique used to remove seasonal variations from a data series to more clearly analyze trends.

Unemployment Rate

The fraction of individuals in the labor force who are without jobs and are searching for employment.

Percentage Point

A unit of measurement used in expressing the difference between two percentages or proportion values.

Seasonally Adjusted

A statistical technique used to remove seasonal variations from data to reveal underlying trends.