Multiple Choice
Government purchases are assumed to be autonomous because they are
A) independent of the price level
B) independent of the level of real GDP
C) independent of consumption
D) independent of investment
E) determined by the government independent of the desires of the households in the economy
Correct Answer:
Verified
Correct Answer:
Verified
Q1: If equilibrium real GDP demanded rises from
Q2: The introduction of a $100 autonomous net
Q5: If the MPC = 0.6 and government
Q6: If the government decreases net autonomous taxes
Q7: In which of the following ways does
Q8: Exhibit 11-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 11-5
Q9: A $200 increase in government purchases has
Q10: Which of the following is a component
Q11: The simple tax multiplier is<br>A)1/MPC<br>B)1<br>C)1/(1 - MPC)<br>D)MPC/(1
Q49: Which of the following statements best explains