Which of the following best describes the simple spending multiplier? Select one: a. It shows the magnified change in planned aggregate spending that arises from a change in equilibrium output. b. It shows the magnified change in equilibrium output demanded that arises from a given initial change in planned aggregate spending. c. It shows the magnified change in equilibrium output demanded that arises from a change in income. d. It shows the magnified change in planned aggregate spending that arises from a change in output. e. It shows the change in planned aggregate spending that arises from a change in real output.

Question

Porter Hunter

Business

18 September, 09:10

Which of the following best describes the simple spending multiplier? Select one: a. It shows the magnified change in planned aggregate spending that arises from a change in equilibrium output. b. It shows the magnified change in equilibrium output demanded that arises from a given initial change in planned aggregate spending. c. It shows the magnified change in equilibrium output demanded that arises from a change in income. d. It shows the magnified change in planned aggregate spending that arises from a change in output. e. It shows the change in planned aggregate spending that arises from a change in real output.

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Alejandro Cox · Answer 1

Option B

Explanation:

It shows the magnified change in equilibrium output demanded that arises from a change in planned aggregate spending best describes the simple spending multiplier.