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Consider the AD Curve in the Simple Macro Model

Question 120

Multiple Choice

Consider the AD curve in the simple macro model.When there is a change in autonomous desired expenditure,the simple multiplier is equal to the


A) product of the horizontal shift of the AD curve times the change in autonomous expenditure.
B) product of the vertical movement along the AD curve times the change in autonomous expenditure.
C) ratio of the horizontal shift of the AD curve to the change in autonomous expenditure.
D) ratio of the vertical movement along the AD curve to the change in autonomous expenditure.
E) ratio of the vertical shift of the AD curve to the change in autonomous expenditure.

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