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The Government Purchases Multiplier Is Defined as
A) Change in equilibrium real GDP  Change in government purchases  \frac{\text {Change in equilibrium real GDP } }{\text { Change in government purchases } }

Question 143

Multiple Choice

The government purchases multiplier is defined as


A)

Change in equilibrium real GDP  Change in government purchases  \frac{\text {Change in equilibrium real GDP } }{\text { Change in government purchases } }
B)


 Change in government purchases  Change in equilibrium real GDP  \frac{\text { Change in government purchases } }{\text { Change in equilibrium real GDP } }
C)


 Change in government purchases  Change in induced consumption  \frac{\text { Change in government purchases } }{\text { Change in induced consumption } }
D)


Change in equilibrium real GDP  Change in autonomous consumption  \frac{\text {Change in equilibrium real GDP } }{\text { Change in autonomous consumption } }

Correct Answer:

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