The era of the Shang and the Zhou dynasties is generally known as the Bronze Age of China, becausebronze, an alloy of copper and tin, used to fashion weapons, parts of chariots, and ritual vessels, played an important role in the material culture of the time.

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3 years ago

Suppose the multiplier has a value that exceeds 1, and there are no crowding out or investment accelerator effects. Which of the

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All of the given options would shift aggregate demand to the right by more than the increase in expenditures.

Answer: Option D

Explanation:

When an economy is at rest than the state is termed as equilibrium but multiplier effect is seen when primary variation in collective demand can have bigger impact on equilibrium level of national income.

Multiplier effect is of two type positive (when primary hike in an injection result into greater final hike in real GDP) and negative (when primary decline in an injection result into greater final decline in real GDP). Here all the options can shift the aggregate demand to the right by more than increase in expenditure and show positive multiplier effect.

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2 years ago