Multiple Choice
The notion that a change in autonomous aggregate expenditures produces a larger change in equilibrium real GDP in the aggregate expenditures model is called the
A) permanent income effect.
B) current income effect.
C) multiplier effect.
D) marginal propensity to consume.
Correct Answer:
Verified
Correct Answer:
Verified
Q18: Consider a simple aggregate expenditure model where
Q19: The smaller the marginal propensity to consume,<br>A)
Q20: Use the following to answer questions .<br>Exhibit:
Q21: Let Y = real GDP and Y<sub>d</sub>
Q22: An upward shift in the consumption function
Q24: Use the following to answer questions .<br>Exhibit:
Q25: A change in autonomous aggregate expenditures will
Q26: According to the real wealth effect, if
Q27: Suppose that your annual income has averaged
Q28: The aggregate demand curve can be derived