The multiplier is calculated as the A) change in autonomous ...

[bclement10]

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]

Answer to Question 1

C

Answer to Question 2

FALSE