The Ratio of the Change in GDP to an Initial

question 26

Multiple Choice

The ratio of the change in GDP to an initial change in aggregate demand is the:

• A) spending multiplier.
• B) permanent income rate.
• C) marginal expenditure rate.
• D) marginal propensity to consume.

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Definitions:

Periodic Method

An accounting method where inventory and cost of goods sold (COGS) are determined at the end of an accounting period, as opposed to continuously tracking these figures.

Tax Rate

Represents the percentage at which an individual or corporation is taxed, often varying based on income level, type of income, or jurisdiction.

Sale Price

The actual price at which a commodity or service is sold to customers.