The size of the multiplier
A) is unaffected by the amount of time that elapses.
B) increases in the long run.
C) decreases in the long run.
D) is constant in the long run.

Question

Quizplus · Accepted Answer

The size of the multiplier decreases in the long run due to factors such as price adjustments, increased interest rates, and full employment, which limit the impact of initial spending changes on the overall economy.

The Size of the Multiplier