The Aggregate Demand Multiplier Effect Says That an Initial Increase

question 139

Multiple Choice

The aggregate demand multiplier effect says that an initial increase in expenditure plans leads to an induced

• A)increase in consumption expenditure.
• B)increase in production expenditure.
• C)increase in government expenditures on goods and services.
• D)decrease in the price level.
• E)increase in exports.

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Definitions:

Pleasant Stimulus

Any event, object, or situation that causes a positive emotional response.

Unpleasant Stimulus

refers to any object, event, or situation that is undesirable or causes discomfort, leading to avoidance behavior in individuals.

Removal

The act of taking something away or eliminating it from a particular location or situation.

Variable-interval Schedule

A schedule used in operant conditioning where a reward is given for a response at random time intervals.