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- Subject
- The National Economyeconomics-mcqs › the-national-economy
- Published
- 27 May 2019
- Last updated
- 28 May 2026
The multiplier indicates the extent to which __________ varies following a change in __________?
Multiple choice question for The National Economy. Select an option, then review the explanation below.
Explanation
The multiplier measures how much total output (GDP) shifts in response to a change in aggregate demand, reflecting the amplified effect of initial spending changes on the economy.
More The National Economy MCQs
Practice related questions from the same subject.
- 1.How does leakage through imports in an open economy affect the multiplier's magnitude?
- 2.Which components determine the overall multiplier effect in an economy?
- 3.With fixed government expenditure and tax rates, during which economic phases does the government budget deficit increase and during which does it decrease?
- 4.What is the likely effect on economic output if the government raises taxes to fully cover an increase in its spending?
- 5.When households attempt to increase their savings, but equilibrium income shifts without any change in total savings, what economic concept does this illustrate?