Question

The multiplier (expenditure multiplier) is the ratio between which two measures?

Answer 1

Option C

Total change in real GDP due to an autonomous change in aggregate spending AND the size of the autonomous change in aggregate spending is the ratio between multiplier

Explanation:

The expenditures multiplier estimates the variation in aggregate production triggered by variations in an item of autonomous expenditure. The expenditures multiplier is the ratio of the difference in aggregate composition to an autonomous transformation in an aggregate expenditure when using is the unique provoked expenditure.

This multiplier is as manageable as it gets while taking the fundamentals of the multiplier. Autonomous investment triggers the multiplier method and induced consumption affords the cumulatively strengthening communication among the destruction, aggregate production, factor payments, and income.