The overall increase in GDP that results from a $1 cut in taxes is called the
A. tax multiplier.
B. base multiplier.
C. fiscal multiplier.
D. government spending effect.
Answer: A
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Which of the following statements is true?
A) Non-bank institutions are also a part of the credit market. B) People who lend money are known as debtors. C) People who borrow money are known as creditors. D) Money that is lent out is considered to be a liability.
In an oligopoly, output is
A) less than the output in monopoly. B) greater than the output in perfect competition. C) in all circumstances the same as the output in perfect competition. D) somewhere between the output in monopoly and that in perfect competition outcomes. E) in all circumstances the same as the output in monopoly.
If the Fed sells bonds and, thereby, unexpectedly shifts to a more restrictive monetary policy, in the short run, the primary impact of this policy will tend to
a. increase inflation. b. reduce unemployment. c. increase real output. d. increase real interest rates.
Which of the following could be used to calculate the profit for a firm?
a. Profit = MR - MC b. Profit = MR - TC c. Profit = (P - MC) × Q d. Profit = (P - ATC) × Q