When the Equilibrium Price Level Adjusts to an Increase in Autonomous

question 103

Multiple Choice

When the equilibrium price level adjusts to an increase in autonomous investment spending, the impact of the multiplier effect resulting from that spending increase

• A) will increase real GDP by an amount smaller than the multiplier effect would indicate.
• B) will increase nominal GDP by an amount smaller than the multiplier effect would indicate.
• C) will have no impact on the real GDP.
• D) is only felt when there are changes in consumption.

---

Definitions:

Heart Attack

A medical condition that occurs when the blood flow to a part of the heart is blocked for a long enough time to cause damage or death to heart muscle.

Hypertension

A chronic medical condition where the blood pressure in the arteries is persistently elevated.

Heart Attack

A medical condition that occurs when the blood flow to the heart is blocked, causing heart muscle damage or death.

Blood Supply

The provision of blood to different parts of the body, facilitated by the circulatory system.