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Consider the Simple Multiplier When the Price Level Is Constant

Question 99

Multiple Choice

Consider the simple multiplier when the price level is constant.We can say that national income is ________ and that the simple multiplier measures the horizontal shift in ________ in response to a change in autonomous desired expenditure.


A) demand determined; the AS curve
B) unit-cost determined; the AD curve
C) constant; the AD curve
D) demand determined; the AD curve
E) constant; the AE curve

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