The Effect of a One-Unit Increase in Autonomous Expenditure on Short-Run

question 28

Multiple Choice

The effect of a one-unit increase in autonomous expenditure on short-run equilibrium output is called:

• A) the marginal propensity to consume.
• B) average labor productivity.
• C) Okun's law.
• D) the income-expenditure multiplier.

---

Definitions:

Closing Represents

The finalization of a transaction or process, such as the closing of a sale or the end of a business operation.

Neutral Third Party

An independent entity or individual who provides unbiased assistance in conflict resolution or decision-making processes.

Buyer And Seller

Parties involved in the transaction of goods or services, where the buyer purchases from the seller.

Installment Payments

A system of paying for goods or services over a period of time in regular, scheduled payments.