The multiplier that arises from equal increases in government spending and taxes is called the

A) balanced budget multiplier. B) simple multiplier.
C) tax multiplier. D) government spending multiplier.


A

Economics

You might also like to view...

To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:

A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.

Economics

According to this Application, the Fed increased its lending by hundreds of billions of dollars to financial institutions as a response to the ongoing financial crisis

This increase in loans to financial institutions increased the supply of money in the economy. When the supply of money increases, the money supply curve will A) shift to the right, increasing the interest rate. B) shift to the left, increasing the interest rate. C) shift to the right, decreasing the interest rate. D) shift to the left, decreasing the interest rate.

Economics

The three basic categories of resources are land, labor, and:

a. money. b. time. c. energy. d. capital.

Economics

Why is a point below the production possibilities curve less efficient than a point on that curve?

What will be an ideal response?

Economics