The idea of the multiplier is that a change in ________ expenditure changes real GDP,which then changes ________ expenditure.The change in total expenditure will be larger than the initial change in ________ expenditure.
A)autonomous;induced;autonomous
B)induced;induced;autonomous
C)induced;autonomous;autonomous
D)induced;autonomous;induced
E)autonomous;induced;induced

Question

Quizplus · Accepted Answer

The multiplier effect describes how an initial change in autonomous expenditure (such as investment or government spending) leads to a larger overall change in real GDP, which then induces further changes in consumption or other expenditures.

The Idea of the Multiplier Is That a Change in ________