The Simple Multiplier Applies to Short- Run Situations in Which

Multiple Choice

The simple multiplier applies to short- run situations in which the price level is constant. The simple multiplier can be defined as

A) the change in national income resulting from a change in expenditure, multiplied by the number of years since the initial change.
B) national income divided by aggregate expenditure.
C) a change in aggregate expenditures multiplied by the equilibrium level of national income.
D) the change in national income resulting from a change in saving.
E) the change in equilibrium national income divided by the initial change in autonomous expenditure that brought it about.