If investment increases by Rs200 and, in response, equilibrium expenditure increases by Rs800 a. The multiplier is 0.25 b. The multiplier is 4 c. The slope of the AD curve is 0.25 d. The slope of the AS curve is 0.50
If investment increases by Rs200 and, in response, equilibrium expenditure increases by Rs800 a. The multiplier is 0.25 b. The multiplier is 4 c. The slope of the AD curve is 0.25 d. The slope of the AS curve is 0.50
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy
Section: Chapter Questions
Problem 1WNG
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Question
If investment increases by Rs200 and, in response, equilibrium expenditure increases by Rs800
a.
The multiplier is 0.25
b.
The multiplier is 4
c.
The slope of the AD curve is 0.25
d.
The slope of the AS curve is 0.50
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