Figure 11.3

-In Figure 11.3, the multiplier effect resulting from a change in investment spending is represented as the distance between points

Question

Figure 11.3
 
-In Figure 11.3, the multiplier effect resulting from a change in investment spending is represented as the distance between points

Quizplus · Accepted Answer

The multiplier effect resulting from a change in investment spending is represented as the change in the equilibrium level of income or output. This is shown as the distance between two points on the income or output axis, which in this case is from y0 to y1.

Figure 11.3 -In Figure 11.3, the Multiplier Effect Resulting from a Change