True/False
Because of the multiplier effect, an increase in government spending of $200 billion will increase aggregate output by less than that amount.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q126: A recessionary gap can be closed by
Q127: Changes in short-run aggregate supply can be
Q128: The aggregate demand curve is downward sloping
Q129: Aggregate demand will NOT increase when:<br>A) household
Q130: The aggregate demand curve is negatively sloped
Q132: During the Great Depression, the United States
Q133: An inflationary gap:<br>A) is generally regarded as
Q134: As a result of a decrease in
Q135: If the price level rises by 10%,
Q136: Use the following to answer questions:<br>Figure: AD-AS