The government spending multiplier is likely to be ________ during periods of low output and high unemployment.

If there is initially a federal budget deficit, and taxes fall while transfer payments rise: a. there is an indeterminate effect on both AD and the budget deficit. b. AD increases and the budget deficit increases

c. AD increases and the budget deficit decreases. d. AD decreases and the budget deficit increases.

Ellen receives a raise at her current part-time job from $8 to $10 per hour. If her labor supply curve is upward sloping, she will work fewer hours after receiving the pay raise

a. True b. False Indicate whether the statement is true or false