What is the multiplier? What does it determine? Why does it matter?
What will be an ideal response?
The multiplier is the amount by which a change in autonomous expenditure is multiplied to determine the change in equilibrium expenditure and real GDP. A change in autonomous expenditure changes real GDP by an amount determined by the multiplier. The multiplier matters because it tells us how much a change in autonomous expenditure changes equilibrium expenditure and real GDP.
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________________ is defined as the application of the scientific method and materials to achieve objectives. Another definition is knowledge systematically applied to useful purposes
a. History b. The 4C Concept c. Technology d. Engineering
According to liquidity preference theory, a decrease in the price level causes the interest rate to
a. increase, which increases the quantity of goods and services demanded. b. increase, which decreases the quantity of goods and services demanded. c. decrease, which increases the quantity of goods and services demanded. d. decrease, which decreases the quantity of goods and services demanded.
Which of the following is an example of a free rider?
A. Listening to NPR without donating at their annual fundraiser. B. Sitting inside of the gate with a ticket to watch an outdoor concert. C. Walking through a public park. D. Completing work for a group project.
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a. and firms paying wages above equilibrium to improve worker health both create frictional unemployment. b. creates frictional unemployment, while firms paying wages above equilibrium to improve worker health creates structural unemployment. c. creates structural unemployment, while firms paying wages above equilibrium to improve worker health creates frictional unemployment. d. and firms paying wages above equilibrium to improve worker health both create structural unemployment.