Solved

Suppose the Multiplier Is 4

Question 49

Multiple Choice

Suppose the multiplier is 4.Ceteris paribus,a change in autonomous spending will change Real GDP more if the aggregate supply curve is __________ than if it is __________.


A) horizontal; upward sloping
B) upward sloping; horizontal
C) upward sloping; downward sloping
D) downward sloping; upward sloping
E) There is not enough information to answer the question.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q44: A change in autonomous spending leads to

Q48: John Maynard Keynes drew many economists _

Q53: Exhibit 10-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2061/.jpg" alt="Exhibit 10-7

Q83: The economy is in equilibrium,TP = TE,and

Q133: If people buy more than has been

Q151: Which of the following is a characteristic

Q161: Keynes believed that saving is<br>A) more responsive

Q162: In Keynes' view,labor unions would resist wage

Q171: The economy is in equilibrium,TP = TE.Then,net

Q172: In the TE-TP framework,total production<br>A) always equals