The Multiplier Is Calculated as the

question 258

Multiple Choice

The multiplier is calculated as the

• A)change in real GDP / change in autonomous expenditure.
• B)change in autonomous expenditure / change in real GDP.
• C)change in nominal GDP / change in autonomous expenditure.
• D)change in real GDP / change in induced spending.
• E)change in consumption/change in disposable income.

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Definitions:

Consumer Surplus

The distinction between the price consumers are willing to offer for a good or service and the price they really pay.

Agricultural Subsidies

Agricultural subsidies are financial incentives provided by the government to farmers or agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Tariff

A tax imposed on imported goods and services to increase their price and reduce competition with domestic industries.

Trade Restrictions

Measures imposed by governments to control the import and export of goods and services with the intention of protecting domestic industries, which can include tariffs, quotas, and other barriers.