Multiple Choice
An increase in government spending is more likely to lead to higher inflation when
A) the unemployment rate is above the natural rate.
B) real GDP is above potential GDP.
C) the business cycle is near the trough.
D) the economy is in a recession.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The government funds its spending by taxation
Q2: What is the largest tax in the
Q3: During a recession,the budget deficit generally increases
Q5: The excess of the federal government's spending
Q6: The multiplier effect can be expressed as
Q7: The marginal propensity to consume is the
Q8: An excise tax taxes individual income.
Q9: During a recession,government spending to push up
Q10: As overseas leakage becomes greater,the multiplier effect<br>A)
Q11: Fiscal stimulus involves raising taxes and reducing