The multiplier measures the
A) vertical shift in the aggregate demand curve from an increase in autonomous spending.
B) horizontal difference between two points on the same aggregate demand curve.
C) horizontal shift in the aggregate demand curve from an increase in autonomous spending.
D) vertical difference between two points on the same aggregate demand curve.

Question

Quizplus · Accepted Answer

The multiplier measures the horizontal shift in the aggregate demand curve from an increase in autonomous spending. It shows how much total spending will increase as a result of an initial increase in autonomous spending.

The Multiplier Measures the