The series of induced changes in consumption spending that result from an initial change in autonomous expenditure is called the
A) induced effect.
B) autonomous effect.
C) multiplier effect.
D) consumption effect.
Which of the following does NOT lead to an increase in potential GDP?
A) labor force grows
B) technological change takes place
C) new machinery and equipment are installed
D) aggregate expenditures increase
If a $10 billion increase in investment leads to a $20 billion increase in GDP,the multiplier is
In a simple model of the economy,if the MPC is 0.8,the multiplier will equal