As the multiplier process is working on the demand side, a. firms will meet the additional demand without raising prices. b. firms will not meet the additional demand. c. firms will meet the additional demand only by raising prices. d. the multiplier process will cease creating demand

As the multiplier process is working on the demand side, a. firms will meet the additional demand without raising prices. b. firms will not meet the additional demand. c. firms will meet the additional demand only by raising prices. d. the multiplier process will cease creating demand

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 5.12P

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Question

As the multiplier process is working on the demand side,

	a.	firms will meet the additional demand without raising prices.
	b.	firms will not meet the additional demand.
	c.	firms will meet the additional demand only by raising prices.
	d.	the multiplier process will cease creating demand

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