Since most welfare programs are administered by the federal government, there is uniformity in both eligibility and the dollar value of benefits in a state by state comparison

Why would a higher tax rate lower the government purchases multiplier? What does the tax rate have to do with the government purchases multiplier?

What will be an ideal response?

Which of the following would be excluded from the gross domestic product (GDP)?

a. The mayor of a city hiring more workers to improve the sanitation of the city b. The sale of mobiles decreasing significantly c. The government reducing welfare benefits d. A homemaker spending $20 taking the family out to lunch instead of cooking food , e. A consumer having his pickup truck tuned up at the local garage