Answer to Question #134738 in Macroeconomics for Valerie

Question

Choose the correct answer
The multiplier is useful in determining the
[1] The level of business inventories
[2] A change in inflation resulting from a change in interest rates.
[3] A change in equilibrium production or income resulting from a change in spending.
[4] A change in unemployment resulting from a change in spending.

Answer 1

Multiplier useful for change in GDP resulting from change in spending.

So we can say change in incomr from change in spending.

Option 3 is correct.