The Expenditure Multiplier Concept of the Aggregate-Expenditures Model

question 119

Multiple Choice

The expenditure multiplier concept of the aggregate-expenditures model:

• A) Is not at all relevant in the AD-AS model
• B) Magnifies the shifts of the aggregate demand curve
• C) Explains movement up or down the aggregate demand curve
• D) Reverses the shift of the aggregate demand curve

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Definitions:

Primary

Describes something that is of first importance or serves as the main focus.

Social

Relating to the organization and functioning of human society or the interactions between individuals.

Innate

Inborn; natural. Describing qualities, abilities, or knowledge present in an individual at birth.

Agoraphobia

An anxiety disorder characterized by an intense fear of places or situations where escape might be difficult or help might not be available.