The formula for the tax multiplier is

A) (1 + b) / (1 - b). B) 1 / (1 - b). C) -b / (1 - b). D) b / (1 - b).


C

Economics

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The assumption that wages adjust more slowly than prices implies that the Phillips Curve

A) exists in the short-run. B) exists in the long-run. C) is vertical. D) does not exist.

Economics

Figure 29-1 ? In Figure 29-1, which panel shows the effect of a Fed open-market sale on the interest rate?

A. Panel (A) B. Panel (B) C. Panel (C) D. Panel (D)

Economics

To what factors do demographers attribute the decline in birthrates? How has the economic view of children changed?

What will be an ideal response?

Economics

If the price of beef jerky rises, the substitution effect due to the price change will cause

A) an increase in the demand for hot sauce, a complement for beef jerky. B) a decrease in the quantity of beef jerky demanded. C) an increase in the quantity of beef jerky demanded. D) an increase in the demand for beef jerky.

Economics