If the Multiplier = Y A, and Y=$150 billion and A=$75. Then the Multiplier is___

A) $225 billion.

B) 0.5.

C) $75 billion.

D) 2.

The multiplier shows that as______changes, real GDP changes by a______amount.

A) induced expenditure; larger

B) induced expenditure; smaller

C) autonomous expenditure; larger

D) autonomous expenditure; smaller

A rise in price level shifts the AE curve_____to and decreases the equilibrium expenditure.

• Upward
• Downward
• Does not affect
• None of the answers are correct