Which of the following would a Keynesian macro model include to describe the effect of a tax cut?

A. Multiplier spending responses.
B. Interest rate rises.
C. Labor supply and production responses.
D. A positive relationship between interest rates and investment.


Answer: A

Economics

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The highest valued alternative option that must be given up in order to choose an action is called its

a. utility.
b. opportunity cost.
c. capital.
d. ceteris paribus

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To ensure that the fundamental identity of national income accounting holds, changes in inventories are

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