Multiple Choice
Consider the AD curve in the simple macro model.The simple multiplier is reflected by the
A) horizontal distance between initial macroeconomic equilibrium and the new intersection of the AD and AE curves in response to a change in autonomous expenditure.
B) downward movement along the AD curve in response to a change in autonomous expenditure.
C) size of the rightward shift of the AD curve in response to a change in autonomous expenditure.
D) upward movement along the AD curve in response to a change in autonomous expenditure.
E) size of the leftward shift of the AD curve in response to a rise in autonomous expenditure.
Correct Answer:

Verified
Correct Answer:
Verified
Q68: Other things being equal,an exogenous increase in
Q69: Suppose firms are currently producing output at
Q70: Which of the following is implied by
Q71: Consider the basic AD/AS model.If their unit
Q72: Consider the relationship between the AE curve
Q74: Other things being equal,a higher marginal propensity
Q75: If the economy is in macroeconomic equilibrium
Q76: In a macro model with a constant
Q77: Which of the following could cause the
Q78: Consider a simple macro model with demand-determined