Joseph Schumpeter's name for the process by which old technologies and the firms that do not adapt are swept away by the new, because they cannot compete in the market.

1.Stagflation

2.Creative Destruction

3.Bargaining Gap

4.Adjustment Gap

A mechanism through which the direct and indirect effect of a change in autonomous spending affects aggregate output" is the definition of the multiplier process. Which of the following isTRUEabout this process ?

1.A higher marginal propensity to import increases the size of the multiplier

2.An increase in the tax rate increases the size of the multiplier

3.A rise in government spending by $ 100 billion will have a smaller impact on aggregate output for a higher propensity to consume

4.A fall in investment spending by $ 100 billion will have a larger impact on aggregate output for a higher propensity to consume