The Government Purchases Multiplier Is Defined as
A) $\frac{\text {Change in equilibrium real GDP }}{\text {Change in government purchases }}$

question 274

Multiple Choice

The government purchases multiplier is defined as

• A) \( \frac{\text {Change in equilibrium real GDP }}{\text {Change in government purchases }} \)
• B) \( \frac{\text {Change in government purchases }} {\text {Change in equilibrium real GDP }}\)
• C) \( \frac{ \text { Change in government purchases }}{ \text { Change in induced consumption }} \)
• D) \( \frac{\text {Change in equilibrium real GDP}}{\text {Change in autonomous consumption }} \)

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