The Multiplier Is Calculated as the

question 137

Multiple Choice

The multiplier is calculated as the

• A)change in real GDP/ change in autonomous expenditure.
• B)change in autonomous expenditure/ change in real GDP.
• C)change in nominal GDP/ change in autonomous expenditure.
• D)change in real GDP/ change in induced spending.

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Definitions:

Parity Ratio

The ratio of the price received by farmers from the sale of an agricultural commodity to the prices of other goods paid by them; usually expressed as a percentage; used as a rationale for price supports.

Prices Received

Refers to the prices that producers get for their products at the point of sale.

Prices Paid

The amount of money expended by buyers to acquire goods or services.

Highly Competitive

A market situation characterized by a large number of firms vying for the same customers, leading to innovation and lower prices.