In order to maintain a balanced budget, Congress has decided to cut taxes and government spending both by $25 billion. What will happen to GDP?
A. It will increase.
B. It will remain the same.
C. It will decrease.
D. It’s impossible to know without the multiplier.
Answer: C
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Supplier power tends to be low when
a. Suppliers are less concentrated b. Inputs provided by the supplier are not vital c. Inputs are less differentiated d. All the above
Which of the following does not contribute to economic freedom?
A.Government regulation of production processes. B. Government enforced property rights. C. Government enforced legal rights. D. Government established political rights.
A rational person is someone:
A. who doesn't worry about costs and benefits. B. who only considers the financial benefits and financial costs of making a choice. C. who does not have well-defined goals. D. with well-defined goals who tries to fulfill those goals as best as he or she can.
The goods and services that firms purchase and turn into final goods and services are called
A. outputs. B. exports. C. inputs. D. none of the above.