Multiple Choice
Since the value of the multiplier is always at least 1,which of the following is correct?
A) The size of the vertical shift in the aggregate expenditure line is always equal to the change in GDP
B) The size of the vertical shift in the aggregate expenditure line is always less than the change in GDP
C) The size of the vertical shift in the aggregate expenditure line is always greater than the change in GDP
D) The size of the vertical shift in the aggregate expenditure line is always equal to or smaller than the change in GDP
E) The MPC is always bigger than 1
Correct Answer:
Verified
Correct Answer:
Verified
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