According to computer estimates using a traditional macroeconomic model, the Obama administration found that the multiplier for tax cuts and government expenditures were respectively
a. .99 and 1.59.
b. 1.59 and .99
c. 1.3 and 1.7
d. 1.7 and 1.3
a
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Which of the following is NOT a determinant of the demand for gasoline?
A. The price of diesel B. Consumers' incomes C. The supply of gasoline D. The price of automobiles
Figure 18-3
In which panel of Figure 18-3 would an excise tax be borne entirely by the supplier?
A. 1 B. 2 C. 3 D. 4
If Stimpson University increases tuition in order to increase its revenue, it will:
A. not be successful if the demand curve slopes downward. B. be successful if demand is elastic. C. be successful if demand is inelastic. D. be successful if supply is elastic.
The figure below shows an IS-LM-FE model for an economy with fixed exchange rates. Initially the economy was at Point A, a triple intersection. Here, the FE curve is flatter than the LM curve.
At Point B, the economy is experiencing
A. a decreasing money supply. B. a high rate of unemployment. C. a surplus in the overall balance of payments. D. an overall balance of payments that is in equilibrium.