The spending multiplier measures the change in equilibrium income that results from a change in:

Question

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The spending multiplier measures the change in equilibrium income, which is determined by autonomous expenditures. Autonomous expenditures are those that don't vary with income, such as government spending or investment spending. Therefore, a change in autonomous expenditures results in a change in equilibrium income, which is captured by the spending multiplier.

The Spending Multiplier Measures the Change in Equilibrium Income That