The Effect on Short-Run Equilibrium Output of a One-Unit Increase

question 34

Multiple Choice

The effect on short-run equilibrium output of a one-unit increase in autonomous expenditure is called:

• A)the marginal propensity to consume.
• B)average labor productivity.
• C)Okun's law.
• D)the income-expenditure multiplier.

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Definitions:

Meter Reading

The process of recording the amount of electricity, gas, water, or other utilities consumed by a household or business.

Thousand Cubic Feet

A unit of measure used primarily in the United States for volume, often in reference to the consumption or production of natural gas.

Natural Gas

A fossil fuel used as a source of energy for heating, cooking, and electricity generation, composed mostly of methane.

Mcf

A standard measurement of natural gas volume, equivalent to 1,000 cubic feet.