During normal times, discretionary fiscal policy
A) is probably not very effective in influencing real GDP due to time lags.
B) is more effective in influencing real GDP than automatic stabilizers.
C) works well because there are no lag problems in influencing real GDP.
D) is more effective in influencing real GDP than at times of a recession.
A
Economics
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A $100 billion increase in government spending increases Real GDP by $900 billion. Assuming a constant price level, what does the government spending multiplier equal?
A) 9 B) 900 C) 800 D) 8 E) 7
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The change in total output due to the change in one variable input, while holding all other inputs constant, is the
A) marginal revenue product. B) derived demand for labor. C) marginal physical product. D) market demand curve for labor.
Economics