Multiple Choice
A change in any component of aggregate demand creates a larger change in overall aggregate demand.This is the ________ effect,and it means,for example,that a(n) ________ in consumption will cause an even larger ________ in AD.
A) multiplier;increase;increase
B) liquidity;decrease;decrease
C) growth;increase;decrease
D) multiplier;decrease;decrease
E) liquidity;increase;increase
Correct Answer:
Verified
Correct Answer:
Verified
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Q201: An increase in government expenditure on goods
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Q339: What is the effect on the aggregate