The Impact Effect Is the

question 8

Multiple Choice

The impact effect is the

• A)zero period dynamic multiplier.
• B)h period dynamic multiplier, h>0.
• C)cumulative dynamic multiplier.
• D)long-run cumulative dynamic multiplier.

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Definitions:

Increasing Returns

A situation where an increase in the amount of inputs results in a more than proportional increase in the output, demonstrating enhanced efficiency or productivity.

Inputs

The resources used in the production process to create goods or services, including labor, raw materials, and capital.

Scale

The size or level of activity of a company or operation, or the capacity to adjust the size or level of activity.

Increasing Returns

A condition in economics when an increase in the scale of production leads to a greater proportional increase in output.