JAMB Economics 2023 Paper

Concept:The multiplier measures how a change in autonomous spending affects total output or income.Explanation:Autonomous spending includes investment, government expenditure, or exports that do not depend on income.When autonomous spending changes, output changes by more than the initial spending.The multiplier is expressed as $\frac{\Delta Y}{\Delta A}$, where $\Delta Y$ is the change in output and $\Delta A$ is the change in autonomous spending.Therefore, the multiplier is the ratio of change in output to a change in autonomous spending.Answer:C. the ratio of change in output to a change in autonomous spending.