When the Equilibrium Price Level Adjusts to an Increase in Autonomous

question 103

Multiple Choice

When the equilibrium price level adjusts to an increase in autonomous investment spending, the impact of the multiplier effect resulting from that spending increase

• A) will increase real GDP by an amount smaller than the multiplier effect would indicate.
• B) will increase nominal GDP by an amount smaller than the multiplier effect would indicate.
• C) will have no impact on the real GDP.
• D) is only felt when there are changes in consumption.

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