According to the multiplier effect, changes in aggregate demand result in ______ changes in national output.
A) smaller
B) larger
C) identical
D) no

Question

Quizplus · Accepted Answer

The multiplier effect suggests that changes in aggregate demand lead to proportionally larger changes in national output, as initial increases in spending lead to further increases in income and consumption.

According to the Multiplier Effect, Changes in Aggregate Demand Result