According to the multiplier concept when there is a change in any oneof the factors (c, i , g, or xn), a multiple impact upon the income, employment, and output of the nation will occur. a) aggregate supplyb) aggregate demandc) either a. or b. d) none of the above

The answer is B Aggregate Demand

Explanation:

The theory of multiplier states that an increase in consumer or business investment spending in a country would produce a multiplier effect by raising the level of national income.The multiplier gives us the exact amount an increase in spending will raise the level of the national income. The multiplier is a mechanism of applying all forms of spending in a country by the government, business, firms, consumption expenditure by individuals, these spending will inject more money into the circular flow of income leading to the employment of more factor services, increasing households consumption expenditure, thereby raising the total national income.

The Aggregate demand is the total value of all planned expenditure of all buyers in the economy it is the sum buyers plan to spend on output, the Aggregate demand is made of consumption and investment spending in an economy in which all income from production is paid to the household sector. The household aggregate consumption is related to their money income. The changes in investment demand or consumption demand change the equilibrium level of income, Although either the consumption function or the investment function schedule can shift it is assumed that the autonomous change in aggregate demand starts with investment. The multiplied effect of a change in autonomous spending occurs because consumption is dependent on the level of income

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