Question

What is the​ multiplier? The multiplier is the amount by which the change in​ ______ expenditure...

What is the​ multiplier?

The multiplier is the amount by which the change in​ ______ expenditure is magnified or multiplied to determine the change in equilibrium expenditure and real GDP.

What does it​ determine?

For every dollar increase in​ ______ expenditure, the multiplier determines the increase in real GDP.

A.

​induced; induced

B.

​induced; autonomous

C.

​autonomous; induced

D.

​autonomous; autonomous

Why does it​ matter?

The multiplier matters because we can use it to determine by how much we should change autonomous expenditure to​______.

A.

minimize taxes and maximize transfer payments

B.

make inventories equal to their target levels

C.

increase real GDP by a given amount

D.

maximize real GDP

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Answer #1

The multiplier is the amount by which the change in​ ______ expenditure is magnified or multiplied to determine the change in equilibrium expenditure and real GDP.

What does it​ determine?

For every dollar increase in​ ______ expenditure, the multiplier determines the increase in real GDP

1-Autonomous,Autonomous

Why does it​ matter?

The multiplier matters because we can use it to determine by how much we should change autonomous expenditure to​_____

2-increase real GDP by a given amount

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