Author Question: Which of the following best describes the simple spending multiplier? a. It shows the magnified ... (Read 65 times)

jCorn1234 · **on:** Jun 30, 2018

Which of the following best describes the simple spending multiplier?
a. It shows the magnified change in planned aggregate spending that arises from a change in output.
b. It shows the magnified change in equilibrium output demanded that arises from a change in income.
c. It shows the magnified change in planned aggregate spending that arises from a change in equilibrium output.
d. It shows the magnified change in equilibrium output demanded that arises from a given initial change in planned aggregate spending.
e. It shows the change in planned aggregate spending that arises from a change in real output.

Question 2

Requiring cars in Los Angeles to reduce pollution by the same amount as cars in Topeka is inefficient.
a. True
b. False
Indicate whether the statement is true or false