In the long run, the multiplier
A) is twice the short-run multiplier.
B) is 0.
C) is greater than 1 because of the position and slope of the SAS curve.
D) depends on the slope of the AD curve.

Question

Quizplus · Accepted Answer

In the long run, the economy returns to full employment, and any initial increase in spending is offset by changes in prices and wages, leading the multiplier effect to be zero.

In the Long Run, the Multiplier