The government expenditure multiplier is the magnification effect of a change in government expenditure on
A) aggregate demand.
B) the budget deficit.
C) tax receipts.
D) aggregate supply.
E) potential GDP.
A
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Deadweight loss declines in size when a unit of output is produced for which
A. consumer surplus exceeds producer surplus. B. marginal cost exceeds marginal benefit. C. producer surplus exceeds consumer surplus. D. maximum willingness to pay exceeds minimum acceptable price.
If there are four firms in a market and each has an equal market share, the Herfindahl-Hirschman Index (HHI) is ________.
A) 1,600 B) 100 C) 5,500 D) 2,500
Which of the following is a subject that economists study?
a. the growth in average income b. the fraction of the population that cannot find work c. the rate at which prices are rising d. All of the above are correct.
In economic terminology, an inferior good is a good
A. for which demand increases as income decreases. B. that has no monetary value. C. that no one will purchase. D. that doesn't work properly.