Explain what the multiplier represents
What will be an ideal response?
The multiplier illustrates the extent to which equilibrium output will change as a result of a given change in autonomous demand.
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Which of the following is a microeconomic topic?
i) Gas prices increase after a hurricane hits the gulf coast. ii) Xavier starts a new business designing web pages. iii) Abby decides to practice an extra hour of soccer instead of studying. A. i, ii and iii
The original intention of the Fed's role as lender of last resort was to make loans to banks that were
A) not illiquid nor insolvent. B) illiquid, but not insolvent. C) insolvent, but not illiquid. D) both illiquid and insolvent.
The measures of absolute poverty:
a. are inversely related to the degree of income equality in a country. b. are directly related to the degree of income equality in a country. c. depend on the prosperity of the poorest 50 percent of population. d. determine the degree of income inequality. e. are completely independent of the degree of income inequality.
The consumer price index reflects
A. the changes in the prices of goods and services typically purchased by consumers. B. the average level of prices for intermediate goods and services purchased by business. C. the median price of a typical single family home. D. prices of all goods and services computed from the ratio of nominal GDP to real GDP.