If the tax multiplier is -1.5 and a $200 billion tax increase is implemented, what is the change in GDP, holding everything else constant? (Assume the price level stays constant.)

A business that discovers a decline in profit can best solve the problem by

a. firing any workers who were hired since the business had maximum profits b. hiring more workers until the former level of profit is reached c. creating a production costs schedule to find the point when increasing returns change to diminishing returns d. creating a production costs and revenues schedule to find the profit-maximizing output

An increase in consumer spending caused by an increase in consumer confidence would cause

A) the aggregate demand curve to shift up and to the right. B) the aggregate demand curve to shift down and to the left. C) a movement down and to the right along the aggregate demand curve. D) a movement up and to the left along the aggregate demand curve.