Suppose that a $30 billion increase in government spending increases Real GDP by $150 billion, and that a $10 billion tax reduction increases Real GDP by $40 billion. In this situation, the tax multiplier is _______________ the government spending multiplier
A) less than
B) greater than
C) equal to
D) none of the above
A
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The nominal wage rate is the
A) minimum hourly wage that a company can legally pay a worker. B) average hourly wage rate measured in the dollars of a given reference base year. C) minimum hourly wage rate measured in the dollars of a given reference base year. D) average hourly wage rate measured in current dollars. E) wage rate after inflation has been adjusted out of it.
Examples of transfers-in-kind include
A) tax rebates on both the federal and state levels. B) taxes on alcohol and tobacco. C) food stamps. D) foreign aid.
The decision by firms of the quantity of output to supply is based on
A. government oversight. B. the price of inputs. C. the price of output. D. techniques of production available.
Most borrowers value money for:
A. Its own sake B. What it can buy C. What it can produce D. What they have to pay for it