Consider a Simple Macro Model with a Constant Price Level

question 47

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.If the simple multiplier is 3 and there is a $2 million increase in autonomous investment spending,then the equilibrium level of income will increase by

• A)$1.2 million.
• B)$2 million
• C)$3 million.
• D)$4.5 million.
• E)$6 million.

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Definitions:

Company's Records

Official documents and files that contain the historical data, transactions, and operational information of a business.

Canceled Check

A check that has been paid and processed by a bank, rendering it invalid for future use or payment.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement, to ensure accuracy.

Company's Records

Documentation and files maintained by a business for accounting, legal, and operational purposes.