The basic idea behind the multiplier is that an increase in
A. GDP brings about an additional, larger increase in GDP.
B. consumer spending causes a larger increase in investment spending.
C. government spending causes a larger increase in tax revenues.
D. spending will cause an even larger increase in equilibrium GDP.
Answer: D
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As a percentage of total federal revenue, excise taxes have _____
a. risen slightly since 1960 b. remained constant since 1960 c. risen considerably since 1960 d. fallen since 1960
Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb, where QD is the quantity of pizza demanded, P is the price of a pizza, and Pb is the price of a burrito
What is the slope of this demand function, and what information does the slope provide?
The inputs used to produce cupcakes (e.g., flour, sugar, butter, and labor) are also used to produce cookies, cakes, muffins, pies and many other goods. This suggests that:
A. the elasticity of supply of cupcakes is relatively high. B. the elasticity of supply of cupcakes is relatively low. C. the supply curve for cupcakes is downward sloping. D. cupcakes are a normal good.
The central question in determining whether a good is public or private is whether
A. The good is provided by the government. B. We have the political will to exclude nonpayers from consumption. C. We have the technical capability to exclude nonpayers from consumption. D. Free riding is considered immoral.