Often, the farther real GDP is below potential GDP,
A) the smaller the multiplier effect.
B) the larger the multiplier effect.
C) the less effective is the multiplier effect.
D) the less meaningful is the multiplier effect.
B
You might also like to view...
If the growth rate of real GDP and the rate of inflation in an economy are 2% and 1% respectively, the growth rate of nominal GDP in the economy must be:
A) 3%. B) 1%. C) 5%. D) 2%.
The ability of a good or service to satisfy a want is known as
a. tangibility. b. desirability. c. utility. d. satisfying.
During the Napoleonic Wars (1793-1815),
a. America experienced periods of full employment. b. urbanization increased sharply. c. America bore the brunt of the mercantilist policies of both England and France. d. Both a and c are correct. e. Both a and b are correct.
If suppliers of garbage collection services charged the full costs of providing the service, the supply curve would
a. change to a positive slope. b. change to a negative slope. c. shift to the left. d. shift to the right.