Use the following to answer questions .
Exhibit: Aggregate Expenditures Curve
Figure 13-6
-(Exhibit: Aggregate Expenditures Curve) What is the value of the multiplier?
A) 1
B) 2
C) 3
D) 5

Question

Use the following to answer questions .
Exhibit: Aggregate Expenditures Curve
Figure 13-6 
-(Exhibit: Aggregate Expenditures Curve) What is the value of the multiplier?
A) 1 
B) 2 
C) 3 
D) 5

Quizplus · Accepted Answer

The value of the multiplier can be determined by finding the change in equilibrium GDP divided by the change in autonomous expenditure. In this exhibit, a $200 billion increase in autonomous expenditure results in a $400 billion increase in equilibrium GDP, so the multiplier is 2.

Note: It is not clear what the "best choice(s)" refers to, so this is the best answer based on the given question.

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