The Ratio of the Increase in ________ to the Increase

question 67

Multiple Choice

The ratio of the increase in ________ to the increase in ________ is called the multiplier.

• A)equilibrium nominal GDP; autonomous expenditure
• B)equilibrium real GDP; autonomous expenditure
• C)autonomous expenditure; equilibrium real GDP
• D)induced expenditure; equilibrium real GDP

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Definitions:

Real Outputs

Refers to the actual goods and services produced by an economy, as measured without inflation.

Absolute Income Gap

The absolute difference in income levels between individuals, groups, or countries.

Per Capita Incomes

An average amount of money earned per person in a certain area, calculated by dividing the total income of a region by its population.

U.S. Aid Programs

Initiatives provided by the United States government intended to help other countries in terms of economic development, health care, infrastructure, and education.