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Author Question: The multiplier is calculated as the A) change in autonomous expenditure/ change in real GDP. B) ... (Read 80 times)

bclement10

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on: Jun 29, 2018
The multiplier is calculated as the
 
  A) change in autonomous expenditure/ change in real GDP.
  B) change in real GDP/ change in induced spending.
  C) change in real GDP/ change in autonomous expenditure.
  D) change in nominal GDP/ change in autonomous expenditure.

Question 2

An increase in government spending will result in an increase in the price level and an increase in real GDP in the long run.
 
  Indicate whether the statement is true or false


T4T

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

FALSE


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