The multiplier effect on real GDP occurs because
A) of income taxes.
B) an autonomous change in expenditure causes an induced change in consumption expenditure.
C) changes in price levels affect our willingness to invest, consume, import and export.
D) of government stabilisation policies.
Correct Answer:
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Q1: The sum of the components of aggregate
Q2: Which of the following shifts the aggregate
Q3: The short- run multiplier is equal to
Q5: Which of the following is NOT an
Q6: An increase in the size of the
Q7: According to Keynesian theory, the typical firm
A)lowers
Q8: The relationship between net exports and GDP
Q9: Suppose that last year the slope of
Q10: If real GDP is $13 billion and
Q11: An increase in disposable income
A)results in a
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