The effect of government spending or tax cuts on national income is measured by the:
A. aggregator.
B. output gap.
C. multiplier.
D. tax rate.
Answer: C
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Economic sanctions
A) usually work to create policy change in the targeted country. B) are more likely to work if the international community supports them. C) are more likely to work if military force is not used. D) never work to create policy change in the targeted country. E) Both A and C.
Which school of economics held that individuals and business firms learn, through experience, to instantaneously anticipate the consequences of changes in monetary and fiscal policy?
A. The Keynesians B. The monetarists C. The supply-siders D. The rational expectationists
When the U.S. dollar appreciates
A) foreign residents demand more of U.S. goods, and U.S. residents desire to purchase more foreign goods. B) foreign residents demand more of U.S. goods, and U.S. residents desire to purchase fewer foreign goods. C) foreign residents demand fewer of U.S. goods, and U.S. residents desire to purchase more foreign goods. D) foreign residents demand fewer of U.S. goods, and U.S. residents desire to purchase fewer foreign goods.
To an economist, the word 'marginal' means:
A) total. B) average. C) next or additional. D) sunk. E) none of these choices.