Question 1
________ reaches its peak about 9-12 months after a spending increase began.
◦ Income
◦ The inflation rate
◦ The multiplier
◦ GDP
Question 2
If the economy is on the flat part of the
AS curve, the multiplier will be
◦ larger than it would be if the economy were on the steep portion of the
AS curve.
◦ smaller than it would be if the economy were on the steep portion of the
AS curve.
◦ constant regardless of where the economy is on the
AS curve.
◦ infinite, as compared to zero if the economy is on the steep portion of the
AS curve.