Multiple Choice
The spending multiplier is the ratio of the change in real GDP to
A) a shift in the expenditure line.
B) a movement along the expenditure line.
C) a shift in the 45-degree line.
D) a change in marginal propensity to consume.
E) a change in potential GDP.
Correct Answer:
Verified
Correct Answer:
Verified
Q15: The consumption relationship in this chapter assumes
Q16: Economic fluctuations have been common only since
Q17: In a boom year,<br>A)potential GDP equals real
Q18: Which of the following statements is false?<br>A)Aggregate
Q19: Manufacturing capacity utilization in normal times typically
Q21: The consumption function shows the relationship between
Q22: The marginal propensity to consume is best
Q23: Which of the following statements is true?<br>A)A
Q24: Equilibrium output in the short run, as
Q25: Suppose business executives become very pessimistic and