The government expenditure multiplier is used to determine the
A) amount aggregate supply is affected by a change in government expenditure.
B) amount aggregate demand is affected by a change in government expenditure.
C) extra scrutiny government action receives.
D) amount private consumption is decreased by government expenditure.
E) extent to which automatic stabilizers must be changed in order to avoid recessions.
B
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Which of the following is a difference between taxing buyers and taxing sellers?
a. Taxing buyers results in a decrease in equilibrium quantity, whereas taxing sellers results in an increase in equilibrium quantity. b. Taxing buyers results in an increase in equilibrium quantity, whereas taxing sellers results in a decrease in equilibrium quantity. c. Taxing buyers results in a decrease in equilibrium price, whereas taxing sellers results in an increase in equilibrium price. d. Taxing buyers results in an increase in equilibrium price, whereas taxing sellers results in a decrease in equilibrium price.
Scarcity is defined as the condition in which
A) both wants and resources are limited. B) wants are finite and resources infinite. C) both wants and resources are infinite. D) wants are infinite and resources finite.