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    Principles of Macroeconomics Study Set 12
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    Exam 15: Household and Firm Behavior in the Macroeconomy: a Further Look
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    Firms Report That Their Workers Are Working No Overtime
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Firms Report That Their Workers Are Working No Overtime

Question 207

Question 207

Multiple Choice

Firms report that their workers are working no overtime. The government reports that the unemployment rate is 13.5%. In this situation, the multiplier is likely to be


A) negative.
B) large.
C) small.
D) zero.

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