How can the multiplier help macroeconomic policymakers determine how much additional investment or government purchases are necessary to reach full employment?
What will be an ideal response?
If the gap between full-employment output and the forecaster output happens to be $90 billion, and the multiplier is 3, policymakers can calculate that only a $30 billion increase in investment and/or government spending is required for the economy to reach full employment.
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Refer to the above figures. Which panel(s) represent economic growth?
A) Panels A and C only B) Panel D only C) Panel A only D) Panels B and D only
Points A, B, and C in Figure 2-8 indicate consumption and investment for three economies. Other things constant, which of the economies is likely to grow more rapidly in the future?
a. economy A b. economy B c. economy C d. They would all be expected to grow at the same rate.
The difference in the marginal tax rate paid by the highest earners and the lowest earners in 2018 was ______ percent.
a. 2 b. 10 c. 27 d. 37
A firm announces that it will refund the difference between its price and any price of a competitor that is lower. This is an example of:
A. predatory pricing. B. tying contracting. C. marginal cost pricing. D. a low-price guarantee