The Ratio of the Increase in ________ to the Increase

question 228

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
• E)planned investment; consumer spending

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Definitions:

Controllable Factor

An element within a business or project that can be managed or influenced directly.

Excess Supply

A situation where the quantity of a product offered for sale by producers exceeds the quantity demanded by consumers at the current price.

Downward Pressure

Describes a situation in which there are factors that are causing the price of an asset or security to potentially decline.

Complements

Items that, when used or consumed together, enhance the value or enjoyment of both, often leading to an increase in demand for one when the price of the other decreases.