The multiplier helps explain
A) why a decrease in taxes causes real Gross Domestic Product (GDP) to fall by more than the amount of the decrease in taxes.
B) why an increase in disposable income causes real Gross Domestic Product (GDP) to rise by less than the amount of the increase in disposable income.
C) why a rise in government expenditures causes real Gross Domestic Product (GDP) to rise by more than the amount of the increase in government spending.
D) why a fall in investment cause real Gross Domestic Product (GDP) to rise by more than the amount of the decrease in investment.
C
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Which of the following would cause an economy to produce at a point inside its production possibilities curve?
A) the efficient allocation of all factors of production B) population growth C) unemployment and an inefficient use of available resources D) capital accumulation
Laws that assign owners the rights to use assets as they see fit are called
A. human rights. B. economic rights. C. property rights. D. government rights.