Multiple Choice
Which of the following would increase GDP by the greatest amount?
A) a $20 billion reduction in taxes
B) $20 billion increases in both government spending and taxes
C) $20 billion decreases in both government spending and taxes
D) a $20 billion increase in government spending
Correct Answer:
Verified
Correct Answer:
Verified
Q26: Unintended changes in inventories<br>A) cause the economy
Q47: (Advanced analysis) Assume the consumption schedule for
Q95: If the MPC in an economy is
Q96: If a lump-sum tax of $40 billion
Q98: Other things equal, the slope of the
Q99: John Maynard Keynes created the aggregate expenditures
Q101: In the aggregate expenditures model, the consumption
Q102: If planned investment is larger than saving,
Q104: In an inflationary expenditure gap, the equilibrium
Q105: What will be the effect of an