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Consider the Basic AD/AS Macro Model

Question 44

Multiple Choice

Consider the basic AD/AS macro model.The simple multiplier is reflected by the


A) horizontal distance between initial macroeconomic equilibrium and the new intersection of AD and AS in response to a change in autonomous expenditure.
B) downward movement along the AD curve in response to a change in autonomous expenditure.
C) size of the rightward shift of the AD curve in response to a change in autonomous expenditure.
D) upward movement along the AD curve in response to a change in autonomous expenditure.
E) size of the leftward shift of the AD curve in response to a rise in autonomous expenditure.

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