The multiple changes in income and output that results from a change in autonomous expenditure is called the multiplier
Indicate whether the statement is true or false
TRUE
You might also like to view...
Briefly explain why China’s environment has declined so severely, and find an article or two from the popular press that updates the progress in reversing the trend.
What will be an ideal response?
A positive value for the cross elasticity of demand between two good implies that these two goods are substitutes.
Answer the following statement true (T) or false (F)
Americans viewed the 12 percent mortgage interest rates of the 1980s as exorbitantly high while they considered the 7 percent mortgage interest rates of the late 1990s as reasonable. This represents a confusion of
a. actual and expected inflation. b. real versus nominal inflation. c. real versus expected mortgage payments. d. real versus nominal interest rates.
Exhibit 17-1 Inflation and unemployment rates
In Exhibit 17-1, when the unemployment rate goes from 9 percent to 1.5 percent, the:
A. level of inflation is unaffected. B. inflation rate goes from 3 percent to 14 percent. C. inflation rate goes from 3 percent to 8 percent. D. inflation rate goes from 8 percent to 14 percent.