Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:
Which is not the characteristic of multiplier?
Options:
aggregate demand cause the multiplier effect
multiplier works in both directions
inverse relationship between MPS and the size of multiplier
aggregate supply cause the multiplier effect
Correct Answer:
aggregate supply cause the multiplier effect
Explanation:
There is no role of aggregate supply in multiplier.