After an increase in autonomous spending, in the long run, changes in the price level
A) will make the AE curve steeper.
B) will reduce the effect of the multiplier.
C) will not affect the multiplier.
D) will make the AE curve flatter.
Correct Answer:
Verified
Q322: The multiplier effect is smallest
A) when the
Q367: An increase in the price level decreases
Q368: The multiplier is 2.5 and the SAS
Q369: An increase in the price level decreases
Q370: Taking into account the upward- sloping short-
Q371: The multiplier is 5.0 and autonomous expenditure
Q373: A fall in the price level shifts
Q374: In the long run, the multiplier
A) is
Q376: In general, a decrease in autonomous expenditure
Q377: When the economy is at full employment
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