The general formula for computing the desired stimulus is

A. AD shortfall - the multiplier.
B. AD shortfall ÷ the multiplier.
C. AD shortfall + the multiplier.
D. AD shortfall × the multiplier.


Answer: B

Economics

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According to the graph shown, when this economy is open to free trade without restriction, the amount imported is:

This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.

A. 900.
B. 1250.
C. 650.
D. 1000.

Economics

If Armenia can produce two rugs or 100 spy novels in an hour, and Turkey can produce one rug or 50 spy novels in an hour,

a. the terms of trade are 50 spy novels per rug, and Turkey should produce both rugs and spy novels b. the terms of trade are 50 spy novels per rug, and Turkey should produce only rugs c. the terms of trade are 50 spy novels per rug, and Armenia should produce only rugs d. there are no gains from trade e. the terms of trade are will exceed 50 spy novels per rug, and Armenia should produce both rugs and spy novels

Economics

Assuming a perfectly competitive market implies that households do not need knowledge of qualities and prices of everything available in the market.

Answer the following statement true (T) or false (F)

Economics

To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:

A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.

Economics