Advertisements
Advertisements
Question
The multiplier tells us how much _______changes after a shift in _____.
Options
Consumption, income
investment, output
savings, investment
output, aggregate demand
Advertisements
Solution
The multiplier tells us how much output changes after a shift in aggregate demand.
APPEARS IN
RELATED QUESTIONS
The multiplier is calculated as______.
It the MPC is 0.5, the multiplier is _________.
In an open economy import _________ the value of the multiplier.
The term super multiplier was first used by ______.
Define multiplier.
Mention the differences between accelerator and multiplier effect.
State the concept of the super multiplier.
Specify the limitations of the multiplier.
Who first introduced the concept of the employment multiplier?
What does the employment multiplier measure?
According to Keynes, what is the investment (income) multiplier?
In the numerical example, investment rises by ₹5 crores and income finally rises by ₹20 crores. What is the value of the multiplier?
Why does the multiplier process lead to a manifold increase in income?
