The expenditure multiplier concept of the aggregate expenditures model
A) is not at all relevant in the AD-AS model.
B) magniﬁes the shifts of the aggregate demand curve.
C) explains movement up or down the aggregate demand curve.
D) reverses the shift of the aggregate demand curve.

Question

Quizplus · Accepted Answer

The expenditure multiplier concept magnifies the shifts of the aggregate demand curve in the aggregate expenditures model.

The Expenditure Multiplier Concept of the Aggregate Expenditures Model