Author Question: When the price level , equilibrium expenditure and the quantity of real GDP ... (Read 108 times)

newyorker26 · **on:** Jun 29, 2018

When the price level ________, equilibrium expenditure ________ and the quantity of real GDP demanded ________.

A) rises; decreases; increases
B) rises; increases; increases
C) rises; increases; decreases
D) falls; increases; decreases
E) falls; increases; increases

Question 2

At the beginning of a recession, the expenditure multiplier

A) offsets the initial cut in autonomous expenditure and slows the recession.
B) has no effect on the recession.
C) offsets the initial cut in autonomous expenditure and reverses the recession.
D) reinforces the initial cut in autonomous expenditure and reverses the recession.
E) reinforces the initial cut in autonomous expenditure and adds force to the recession.