Consider the Basic AD/AS Macro Model

question 90

Multiple Choice

Consider the basic AD/AS macro model.The simple multiplier is reflected by the

• A)horizontal distance between initial macroeconomic equilibrium and the new intersection of AD and AS in response to a change in autonomous expenditure.
• B)downward movement along the AD curve in response to a change in autonomous expenditure.
• C)size of the rightward shift of the AD curve in response to a change in autonomous expenditure.
• D)upward movement along the AD curve in response to a change in autonomous expenditure.
• E)size of the leftward shift of the AD curve in response to a rise in autonomous expenditure.

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Definitions:

Permeability

The capability of a porous material to allow fluids to pass through it, crucial in determining the flow of water and hydrocarbons in geology.

Porosity

A measure of how much of a rock, soil, or sediment's volume is occupied by voids or pores, affecting its ability to hold fluids.

Confined Aquifer

An aquifer that is separated from Earth’s surface by materials with low permeability.

Artesian Well

A well drilled through impermeable strata to reach water capable of rising to the surface under natural pressure.