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Consider the Consumption Function

Question 127

Multiple Choice

Consider the consumption function Consider the consumption function . If , a 2 percent demand shock: A) raises short-run output by 1 percent. B) raises short-run output by 0.5 percent. C) raises short-run output by 4 percent. D) reduces short-run output by 4 percent. E) has no impact on short-run output. . If Consider the consumption function . If , a 2 percent demand shock: A) raises short-run output by 1 percent. B) raises short-run output by 0.5 percent. C) raises short-run output by 4 percent. D) reduces short-run output by 4 percent. E) has no impact on short-run output.
, a 2 percent demand shock:


A) raises short-run output by 1 percent.
B) raises short-run output by 0.5 percent.
C) raises short-run output by 4 percent.
D) reduces short-run output by 4 percent.
E) has no impact on short-run output.

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