If the price level falls as real GDP decreases, the multiplier ...

[Sportsfan2111]

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.

[anoriega3]

Answer to Question 1

True

Answer to Question 2

c

[Sportsfan2111]

Thanks for the timely response, appreciate it

[jamesnevil303]

Gracias!