In order to maintain a balanced budget, Congress has decided to cut taxes and government spending both by $25 billion. What will happen to GDP?
A. It will increase.
B. It will remain the same.
C. It will decrease.
D. It’s impossible to know without the multiplier.
Answer: C
Economics
You might also like to view...
In the table above, if the wage rate is $8.00 per hour, the profit-maximizing number of workers is
A) 1. B) 2. C) 4. D) 5.
Economics
It is possible for the balance of trade to be negative, and the current account to be positive
a. True b. False Indicate whether the statement is true or false
Economics