Which of the following measures the change of real GDP in the short run as a result of a an increase in government purchases?
A)Spending balance
B)Potential GDP
C)Life-cycle model
D)Keynesian multiplier
E)45-degree line

Question

Quizplus · Accepted Answer

The Keynesian multiplier measures the change in real GDP resulting from a change in autonomous spending, such as government purchases. It is a short-run concept that accounts for the multiplier effect of increased spending on aggregate demand.

Which of the Following Measures the Change of Real GDP