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As a macroeconomist who utilizes the expenditure multiplier, you know that: Group of answer choices you use the expenditure multiplier only when the Phillips Curve
As a macroeconomist who utilizes the expenditure multiplier, you know that: Group of answer choices you use the expenditure multiplier only when the Phillips Curve shifts due to a positive supply shock. when the Fed raises the federal funds rate, you multiply the change in the federal funds rate by the multiplier to find the new real interest rate. when the government increases its spending, aggregate expenditure decreases by the amount of the multiplier. any spending shock will change aggregate expenditure by more than the initial shock itself
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