The simple multiplier,which applies to short-run situations in which the price level is constant,describes changes in
A)investment induced by changes in equilibrium income.
B)saving caused by changes in investment.
C)the equilibrium level of national income caused by changes in autonomous expenditure.
D)the rate of interest caused by increased demand for credit.
E)employment induced by changes in equilibrium income.

Question

Quizplus · Accepted Answer

The simple multiplier effect refers to the change in the equilibrium level of national income resulting from a change in autonomous expenditure, assuming the price level is constant.

The Simple Multiplier,which Applies to Short-Run Situations in Which the Price