The Multiple by Which an Initial Change in Aggregate Spending

question 105

Multiple Choice

The multiple by which an initial change in aggregate spending will alter total expenditure after an infinite number of spending cycles is the:

• A) Business cycle.
• B) Multiplier.
• C) Velocity of money.
• D) GDP gap.

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Definitions:

Prejudice

Preconceived opinion or bias, often stemming from stereotypes, towards an individual or group without sufficient knowledge, reason, or direct experience.

Stereotyping

The act of assigning a set of characteristics to a group of people, disregarding individual differences.

Frustration-Aggression Principle

A theory suggesting that frustration often leads to aggressive behavior, as aggression is a result of blocked goal achievement.

Implicit Associations

The automatic and unconscious associations people make between different concepts and beliefs, which can influence attitudes and behavior.