A tax multiplier equal to -4.30 would imply that a $100 tax increase would lead to a:
a. 43 percent decrease in real GDP.
b. $430 decline in real GDP.
c. $430 increase in real GDP.
d. 4.3 percent increase in real GDP.
e. 4.3 percent decrease in real GDP.
b
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Trade adjustment assistance in the United States began in 1962 . The program
a. was designed to provide assistance to firms or workers who suffer idle facilities, unprofitability, and unemployment because of sharp increases in imports. b. provided little assistance to victims of free trade before the 1970s. c. was enlarged and worker benefits were extended in 1981 by the Reagan administration. d. All of the above are correct.
About ____ of the world's population subsists on no more than $2 a day.
A. one tenth. B. one quarter. C. one third. D. one half.
Keynes believed in all of the following EXCEPT.
A. the expected rate of profit was more important than the interest rate. B. recessions are temporary. C. expansionary government spending and tax cuts are cures for recessions and depressions. D. in the short run, aggregate demand should be manipulated to stabilize the economy.
You value your economics textbook at $10. Someone else values it at $25, and that person is willing to pay you $20 for your textbook. Would selling your textbook to this person for $20 be Pareto efficient?
A. No, the person paid you $20 for the book so his net benefit was only $5, whereas your net benefit was $10. For this change to be Pareto efficient, each of you should have the same net benefit. B. Yes, because even though you gain from the trade and he loses, there is the potential for you to compensate him for his loss. C. No, because you did not receive the maximum amount the other person would have been willing to pay for the textbook. D. Yes, because both of you are better off as a result of the trade.