The Multiplier Is Calculated as the Change in ________ Divided

question 180

Multiple Choice

The multiplier is calculated as the change in ________ divided by the change in ________.

• A)real GDP; autonomous expenditure
• B)autonomous expenditure; real GDP
• C)nominal GDP; autonomous expenditure
• D)real GDP; induced spending

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Definitions:

Per Capita Real GDP

A measure of the average economic output per person, adjusted for inflation, in a specific area.

Population

Population refers to the total number of people living in a particular area or country at a specific time.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, essentially adjusting for inflation and allowing for comparisons across time periods by reflecting the prices of all goods and services produced domestically.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy in a year, used to deflate nominal GDP to real GDP.