The Government Purchases Multiplier Is Defined as
A) $\frac{\text {Change in equilibrium real GDP } }{\text { Change in government purchases } }$

The government purchases multiplier is defined as

A)

$\frac{\text {Change in equilibrium real GDP } }{\text { Change in government purchases } }$
B)


$\frac{\text { Change in government purchases } }{\text { Change in equilibrium real GDP } }$
C)


$\frac{\text { Change in government purchases } }{\text { Change in induced consumption } }$
D)


$\frac{\text {Change in equilibrium real GDP } }{\text { Change in autonomous consumption } }$

Correct Answer:

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