List the reasons why the actual multiplier, which is estimated to be less than 2 for the U.S. economy, is much less than what the oversimplified formula suggests


The oversimplified formula:
1 . ignores variable imports, which reduce the size of the multiplier.
2 . ignores price-level changes, which reduce the size of the multiplier.
3 . ignores the income tax, which reduces the size of the multiplier.
4 . ignores the rising interest rates that accompany any autonomous increase in spending, which also reduce the size of the multiplier.

Economics

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What variable has been shown to be highly correlated with nutrition, disease, and income, and is increasingly being used by economists to measure the well being of people?

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