Because a Decrease in Real Autonomous Spending Results in a ________

question 179

Multiple Choice

Because a decrease in real autonomous spending results in a ________ in the price level, the ultimate effect on real GDP is ________ than predicted by the multiplier.

• A) fall; smaller
• B) fall; larger
• C) rise; smaller
• D) fall, smaller

---

Definitions:

School Budgets

Financial plans that outline expected income and expenses for educational institutions over a specific period.

Voucher System

A policy or system in which vouchers are given, typically by the government, to individuals to purchase specific services or goods.

Public Education

A system of education that is universally available and funded by the government to ensure that all members of society have access to basic education.

Private Schools

Educational institutions not funded by public sources, often offering specialized curriculums or environments that differ from public schools.