The simple multiplier, which applies to short- run situations in which the price level is constant, describes changes in
A)the equilibrium level of national income caused by changes in autonomous expenditure.
B)investment induced by changes in equilibrium income.
C)employment induced by changes in equilibrium income.
D)saving caused by changes in investment.
E)the rate of interest caused by increased demand for credit.

Question

Quizplus · Accepted Answer

The simple multiplier pertains to changes in equilibrium income caused by changes in autonomous expenditure, assuming that the price level remains constant.

The Simple Multiplier, Which Applies to Short- Run Situations in Which