In general, the steeper the aggregate expenditure curve, the
A) smaller the multiplier.
B) lower the marginal propensity to consume.
C) greater autonomous expenditure.
D) larger the multiplier.

Question

Quizplus · Accepted Answer

The steeper the aggregate expenditure curve, the larger the multiplier. This is because a small change in autonomous expenditure causes a large change in equilibrium output.

In General, the Steeper the Aggregate Expenditure Curve, the