In general, the steeper the aggregate expenditure curve, the
A) lower the marginal propensity to consume.
B) smaller the multiplier.
C) greater autonomous expenditure.
D) larger the multiplier.

Question

Quizplus · Accepted Answer

The steeper the aggregate expenditure curve, the larger the multiplier. This is because a small change in autonomous expenditure leads to a large change in equilibrium output.

In General, the Steeper the Aggregate Expenditure Curve, the