It is a fact that the government spending multiplier is always greater than the tax multiplier
Indicate whether the statement is true or false
False
You might also like to view...
Evaluate the following statement. If a firm is suffering economic losses then the sensible thing to do is to shut down temporarily
What will be an ideal response?
Economists say that since wants are unlimited and the earth contains a finite quantity of resources that people keep using,
a. we will run out of resources b. consumers will lose sovereignty c. the circular flow model will eventually shrink d. scarcity will always be a fact of economic life e. the ceteris paribus assumption becomes more universal
Which of the following statements is false?
A) The Dow Jones Industrial Average went down by 40 percent during the decade of the 1930s. B) Based on data from the period between 1926 and 2004, the probability of having a positive return on an investment in the stocks contained in the Dow Jones Industrial Average would have been 97.1 percent if the stocks had been held for 10 years. C) When reading the stock market page of a newspaper, if the column marked "Div." is blank, it means that the company does not currently pay out dividends. D) A stock that yields 4 percent is better than a stock that yields 5 percent, all else being the same.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward