The principle of the multiplier states that: any increase in aggregate spending that causes the aggregate demand curve to shift will result in a larger increase in national income. in the long run, the aggregate demand curve becomes relatively flat as the economy approaches full employment. any increase in national income will result in a larger increase in aggregate spending. for any given increase in income, there will be a less than proportional increase in consumer spending. None of the above.
The principle of the multiplier states that: any increase in aggregate spending that causes the aggregate demand curve to shift will result in a larger increase in national income. in the long run, the aggregate demand curve becomes relatively flat as the economy approaches full employment. any increase in national income will result in a larger increase in aggregate spending. for any given increase in income, there will be a less than proportional increase in consumer spending. None of the above.
Chapter9: The Keynesian Model In Action
Section: Chapter Questions
Problem 18SQ
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The principle of the multiplier states that:
any increase in aggregate spending that causes the aggregate demand curve to shift will result in a larger increase in |
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in the long run, the aggregate demand curve becomes relatively flat as the economy approaches full employment. |
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any increase in national income will result in a larger increase in aggregate spending. |
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for any given increase in income, there will be a less than proportional increase in consumer spending. |
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None of the above. |
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