A fiscal stimulus was initiated by President Obama in response to the economic downturn of 2008-2009 . At that time, the president's economists estimated the multiplier to be
a. 3.2 for government purchases and 2.0 for tax cuts.
b. 2.4 for government purchases and 1.4 for tax cuts.
c. 1.6 for government purchases and 1.0 for tax cuts.
d. 1.6 for government purchases and 0.4 for tax cuts.
c
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
In Spain, people are considered organ donors unless the explicitly indicate they do not want to be. In the United States, people are only considered organ donors if they explicitly indicate they wish to be. Behavioral economics would suggest that
A) everything else equal, the opt-in system of Spain would generate more organ donors as a percentage of the adult population. B) everything else equal, the opt-in system of the United States would generate more organ donors as a percentage of the adult population. C) everything else equal, the opt-out system of Spain would generate more organ donors as a percentage of the adult population. D) everything else equal, the opt-out system of the United States would generate more organ donors as a percentage of the adult population.
When a firm's demand fluctuates randomly,
A) no profit can be earned on the inventory. B) the optimal inventory maximizes the profit of the inventory. C) the profit-maximizing inventory is found where the expected marginal benefit exceeds the expected marginal cost. D) managers cannot use marginal analysis to determine the optimal inventory.