The multiplier will be smaller, other things being equal:
a. the smaller the fraction of each dollar earned that goes to taxes

According to this Application, the policies used by the European Union to support the agricultural sectors of its member countries created excess supply. Excess supply can be generated if a government establishes a

A) price ceiling above the market equilibrium price. B) price ceiling below the market equilibrium price. C) price floor above the market equilibrium price. D) price floor below the market equilibrium price.

Refer to the production possibilities frontier in the figure above. Which production point is unattainable?

A) point a B) point b C) point c D) point e