When the equilibrium price level adjusts to an increase in autonomous investment spending, the impact of the multiplier effect resulting from that spending increase
A) will increase nominal GDP by an amount smaller than the multiplier effect would indicate.
B) is only felt when there are changes in consumption.
C) will increase real GDP by an amount smaller than the multiplier effect would indicate.
D) will have no impact on the real GDP.
Question 2
The labor demand curve represents the relationship between the quantity of labor demanded at:
A) different income tax rates.
B) different values of average product of labor.
C) different wage rates.
D) different prices of the good that labor is used to produce.
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