In the Keynesian model the multiplier is equal to (4 marks) A The equilibrium level of output for a given level of aggregate expenditure. B The increase in aggregate expenditure brought about by a change in investment. C The increase in the equilibrium level of income divided by the change in autonomous expenditure. D The increase in autonomous expenditure when equilibrium income increases.

In the Keynesian model the multiplier is equal to (4 marks) A The equilibrium level of output for a given level of aggregate expenditure. B The increase in aggregate expenditure brought about by a change in investment. C The increase in the equilibrium level of income divided by the change in autonomous expenditure. D The increase in autonomous expenditure when equilibrium income increases.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter23: The Aggregate Expenditure Model

Section: Chapter Questions

Problem 11P

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