The multiplier effect occurs when:
A. spending by one person generates income for others and causes others to spend more too, increasing the impact of the initial spending on the economy.
B. the level of consumer confidence increases more than predicted given a tax cut.
C. increased spending by one or more individuals causes others to react and increase their savings.
D. None of these is true.
A. spending by one person generates income for others and causes others to spend more too, increasing the impact of the initial spending on the economy.
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A minimum wage set above the equilibrium wage rate is a price
A) ceiling that results in a shortage of low-skilled labor. B) ceiling that results in a surplus of low-skilled labor. C) floor that results in a shortage of low-skilled labor. D) floor that results in a surplus of low-skilled labor.
As a candidate for president of the United States, Barak Obama was an ardent supporter of outsourcing
Indicate whether the statement is true or false
How is the value of a good determined?
What will be an ideal response?
??Exhibit 16A-2 Macro AD/AS Models
?
As shown in Panel (a) of Exhibit 16A-2, assume the economy adopts a classical nonintervention policy. Which of the following would cause the economy to self-correct?
A. ?Competition among firms for workers increases the nominal wage and SRAS shifts rightward. B. ?Long-run equilibrium will be established at Y1 and P2. C. ?Long-run equilibrium will be established at Y1 and P3. D. ?Competition among unemployed workers decreases nominal wages and SRAS shifts rightward.