Assuming that there are NO income taxes, if both autonomous taxes, and government expenditures were to rise by $100 million, we would expect equilibrium GDP to
A) rise by $100 million.
B) rise, but by a multiple of $100 million.
C) rise by less than $100 million.
D) remain unaffected because leakages have changed by the same amount.
A
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Describe the major costs of inflation, being sure to distinguish between anticipated and unanticipated inflation
What will be an ideal response?
As a firm hires more workers, holding the amounts of capital and other inputs constant,
A) output increases at a decreasing rate. B) output increases at a constant rate. C) output increases for a while and then decreases. D) output increases, but we can't be certain whether output increases at an increasing or a decreasing rate.
In the classical model,
A. full employment will never be reached. B. wages will go up but never go down. C. unemployment will never exist because employers will be willing to pay the wage rate demanded by the workers. D. unemployment will never exist since workers will be willing to accept lower wages and will then be able to find work.
The Federal Reserve System consists of ________ Federal Reserve Banks.
A. 8 B. 10 C. 12 D. 14