Should the government engage in expansionary and contractionary policy How much we should change autonomous expenditure to increase real gdp by a fixed amount? What is the role of depository institutions?

Name: ECON 201 Exam #2 Study Guide
Brand: StudySoup
SKU: 2431250
Price: 45.00 USD
Availability: InStock
Rating: 5 (1 reviews)

ECON 201 Exam #2 Study Guide Highlight Legend Yellow = Key term Blue = List/sequence Orange = Equation/Formula Green = Important info Chapter 11 (continued) -- The Multiplier 1. The Multiplier 1. The Multiplier Effect is the change in the equilibrium level of real GDP resulting from a change in autonomous expenditure. 2. The Multiplier is the amount by which a change in autonomous expenditure is multiplied, and can be used to determine the change in equilibrium expenditure and real GDP 3. The main idea behind the multiplier is that an increase in