A change in any component of aggregate demand creates a larger change in overall aggregate demand. This is the ________ effect, and it means, for example, that a(n) ________ in consumption will cause an even larger ________ in AD
A) multiplier; increase; increase
B) growth; increase; decrease
C) multiplier; decrease; decrease
D) liquidity; decrease; decrease
E) liquidity; increase; increase
C
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Economic efficiency occurs when the firm produces a given output
A) by using the least amount of inputs. B) by using the maximum amount of inputs. C) at the least cost. D) at the greatest cost.
A rise in the price level that reduces the real wealth of people who hold financial assets is an illustration of the:
a. interest rate effect. b. monetary theory. c. supply-side theory. d. wealth effect. e. trade effect
If Sam, the Pizza Man, lowers the price of his pizzas from $6 to $5 and finds that sales increase from 400 to 600 pizzas per week, then the demand for Sam's pizzas in this range is:
A. inelastic. B. elastic. C. unit elastic. D. inferior.
The low-rate loans that are to be repaid within ten years seem to be a form of ________ as they shift the International Monetary Fund to a role as a development organization.
A. mission creep B. tequila effect C. stand-by arrangements D. moral hazard