Recall the Application about the success of the 2009 stimulus package to answer the following question(s).According to the Application, economist John B. Taylor found that the temporary tax cuts which were a part of the 2009 stimulus package:
A. were very successful in stimulating consumption spending.
B. did very little to stimulate consumption spending.
C. were split very evenly between consumption spending and household saving.
D. were primarily used to pay off home mortgage balances.
Answer: B
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
If initial equilibrium real Gross Domestic Product (GDP) is $400 billion, MPC = 0.9, and autonomous investment increases $40 billion, equilibrium real Gross Domestic Product (GDP) will be
A) $440 billion. B) $360 billion. C) $600 billion. D) $800 billion.
If the multiplier is 4, equilibrium real GDP is $600 billion, and investment is $25 billion, what will happen if investment increases to $30 billion? Real GDP will:
a. increase to $605 billion b. decrease to $595 billion c. increase to $620 billion d. increase to $624 billion e. decrease to $580 billion
The number one cause of death in the United States was _______ in 1980. By 2014, it was _______.
a. AIDS; cancer b. heart disease; heart disease c. cancer; stroke d. homicide and accidents; adult onset diabetes e. stroke; pneumonia and influenza