Suppose Aggregate Output Is Demand-Determined

question 50

Multiple Choice

Suppose aggregate output is demand-determined.Suppose a decrease in autonomous investment expenditure of $20 million reduces equilibrium national income by $50 million.The simple multiplier is equal to

• A)-2.5.
• B)-0.6.
• C)0.4.
• D)0.6.
• E)2.5.

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Definitions:

Correlational Design

is a research method used to examine the relationship between two or more variables to determine if a change in one variable corresponds with a change in another.

Willingness To Help

Willingness to help refers to an individual's predisposition or likelihood to offer assistance or support to others in need.

Correlational Methods

Research techniques that study the relationship or association between two or more variables without manipulating them.

Experimental Methods

Experimental Methods are research methodologies that involve manipulating one variable to determine if changes in one variable cause changes in another variable, typically to establish causal relationships.