Author Question: Assume an economy experiences, for a given period, a 4 increase in output and a 4 increase in ... (Read 83 times)

ssal · **on:** Jun 30, 2018

Assume an economy experiences, for a given period, a 4 increase in output and a 4 increase in productivity. Given this information, we know that which of the following occurred for this economy during this period?

A) The unemployment rate increased during this period.
B) The unemployment rate decreased during this period.
C) The unemployment rate did not change during this period.
D) The effects on the unemployment rate are ambiguous.
E) none of the above

Question 2

Explain what the multiplier represents.

What will be an ideal response?

akpaschal · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

The multiplier illustrates the extent to which equilibrium output will change as a result of a given change in autonomous demand.