The Expenditure multiplier occurs because A. a change in autonomous expensitures changes household incomes B) a change in autonomous expensitures causes real GDP to change in the opposite dirrection C) a change in households incomes changes autonomous expensitures D) any change in real GDP must also change the price level E) goverment expenditure on goods and services change by a proportional amount to government taxes
The Expenditure multiplier occurs because A. a change in autonomous expensitures changes household incomes B) a change in autonomous expensitures causes real GDP to change in the opposite dirrection C) a change in households incomes changes autonomous expensitures D) any change in real GDP must also change the price level E) goverment expenditure on goods and services change by a proportional amount to government taxes
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 4.8P
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The Expenditure multiplier occurs because
A. a change in autonomous expensitures changes household incomes
B) a change in autonomous expensitures causes real
C) a change in households incomes changes autonomous expensitures
D) any change in real GDP must also change the price level
E) goverment expenditure on goods and services change by a proportional amount to government taxes
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