The multiplier effect is triggered by a shift in the aggregate expenditures curve.

Name: The multiplier effect is triggered by a shift in the aggregate expenditures curve.
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Question

Quizplus · Accepted Answer

The multiplier effect is a result of an initial change in autonomous expenditure (such as government spending, investment or exports). This causes a shift in the aggregate expenditures curve, which sets off a chain reaction of increased spending and income throughout the economy. Therefore, the statement is true.

The Multiplier Effect Is Triggered by a Shift in the Aggregate