Multiple Choice
When autonomous expenditure changes, the horizontal distance by which the aggregate demand curve shifts
A) depends on the size of the multiplier.
B) depends on the size of the wealth effect.
C) is increased by the existence of automatic stabilizers.
D) is determined by the inverse of the multiplier.
Correct Answer:
Verified
Correct Answer:
Verified
Q272: Which of the following shifts the aggregate
Q273: 1 - MPC equals<br>A) autonomous consumption.<br>B) the
Q274: As real disposable income increases, consumption expenditure
Q275: If the MPC increases from 0.75 to
Q276: In a simple economy in which prices
Q278: What is the difference between movements along
Q279: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The above figure
Q280: The MPC and MPS sum to<br>A) 1.<br>B)
Q281: In the short run, the multiplier typically
Q282: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above