The tax multiplier is negative because increases in taxes lead to decreases in consumer spending
Indicate whether the statement is true or false
TRUE
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In a simple economy without government or foreign trade, any income not consumed is called
A) net investment. B) depreciation. C) saving. D) investment.
During World War II, the increasing productivity of workers who built ships was due primarily to
A) human capital accumulation through schooling and training. B) human capital accumulation by repeatedly doing the same tasks. C) discoveries of new and better technologies. D) investments by shipyards in new capital equipment.
If private consumption in the United States was 69 percent of GDP, investment was 18 percent, government purchases were 18 percent, exports were 9 percent, and imports were 14 percent, net exports were equal to ____ percent of GDP
a. -5 b. 5 c. -23 d. 23
All of the following are reasonable explanations of the labor productivity speed-up in the United States except
a. labor force quality. b. technological change. c. investment spending. d. research and development.