According to the IS curve, the tax multiplier is always ________
A) larger in absolute value than the expenditure multiplier
B) equal to the expenditure multiplier
C) smaller in absolute value than the expenditure multiplier
D) equal to one
C
You might also like to view...
If the demand for swordfish is price elastic and the price of swordfish increases, then
a. the quantity of swordfish demanded will increase b. the total revenue from swordfish sales will decrease c. the total revenue from swordfish sales will increase d. the total revenue from swordfish sales will not change e. whether total revenue rises or falls depends on how much the price of swordfish increases
Which term describes the process of examining the physical outputs to the physical inputs of a given production process?
a. production function b. aggregate production function c. human capital d. physical capital
A monopolistically competitive firm is currently charging a price of $20 and producing 3,000 units/month. It faces monthly fixed costs of $1,000 and has an average variable cost of $22/unit. We would expect:
a. The firm to earn an economic profit in the long run b. The firm to shut down in the short run c. The firm to raise its price to cover its variable costs d. The firm to adjust its production to minimum efficient scale
Under a rule of reason approach, an act is illegal:
A. only if it is shown to result in an anticompetitive outcome. B. if two parties merge. C. if a firm engages in price discrimination. D. if two firms engage in price fixing.