Author Question: If the price level falls as real GDP decreases, the multiplier effects of any given change in ... (Read 13 times)

Sportsfan2111 · **on:** Jun 30, 2018

If the price level falls as real GDP decreases, the multiplier effects of any given change in aggregate expenditures are smaller than they would be if the price level remained constant.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If bad weather destroyed half of the current coffee crop, ceteris paribus, it would:
a. increase the demand for coffee.
b. decrease the demand for coffee.
c. increase the demand for tea.
d. decrease the demand for tea.