An Example of the Multiplier Effect Is When

question 77

Multiple Choice

An example of the multiplier effect is when

• A) the government increases government spending initially by $100 billion,and total income in the economy increases by less than $100 billion.
• B) an increase in the price level leads to a shift in the aggregate demand curve.
• C) the government increases government spending initially by $100 billion,and total income in the economy increases by more than $100 billion.
• D) an increase in government spending leads to a decrease in private investment.
• E) short-run aggregate supply shifts in a response to fiscal policy.

---

Definitions:

Operant-Conditioning

A method of learning that occurs through rewards and punishments for behavior, encouraging the subject to associate certain behaviors with specific consequences.

Successive Approximations

In the operant-conditioning procedure of shaping, behaviors that are ordered in terms of increasing similarity or closeness to the desired response.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is paired with an unconditioned stimulus.

Unconditioned Stimulus

In classical conditioning, a stimulus that unconditionally—naturally and automatically—triggers a response.