If the value of the multiplier is smaller, the economy
A. becomes less stable because automatic stabilizers have a larger impact.
B. becomes more stable because automatic stabilizers have a larger impact.
C. becomes more volatile because automatic stabilizers have a lesser impact.
D. is subject to larger fluctuations because automatic stabilizers have no impact.
Answer: B
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. The major reason education leads to higher wages is due to signaling. 2. Attending college can be seen as an individual’s attempt to raise their level of human capital. 3. Since mowing ones lawn is not done at their workplace, it is viewed as a use of their leisure time and thus (somewhat paradoxically) falls into the category of leisure. 4. One deficiency of labor-leisure indifference curve analysis is that because indifference curves are always tangent to the worker’s budget line, the model can not explain why some people choose not to work. 5. A firm’s marginal revenue product of labor equals the marginal product of labor times the cost per unit of the labor.
The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs
After this price ceiling is in effect and taking account of the resources lost in search, consumer surplus equals ________. A) $900,000 B) $400,000 C) $200,000 D) $180,000 E) $100,000
Refer to Figure 5-15. The current market equilibrium output is partly the result of overfishing. In that case, what does S2 represent?
A) the private marginal cost of harvesting salmon B) the private marginal benefit of harvesting salmon C) the social marginal cost of harvesting salmon D) the social marginal benefit of harvesting salmon
A firm engaging in group price discrimination
A) divides customers into groups and then charges each customer within each group a different price, similar to perfect price discrimination. B) divides customers into groups and then charges each group a different price. C) bundles products into groups and sells the groups at different prices. D) finds the average reservation price for a group of customers and sell its goods at that price.