In the United States, the average level of educational attainment is approximately a

A change in tax rates

A) has a larger multiplier effect the smaller the tax rate. B) has a less complicated effect on GDP than does a tax cut of a fixed amount. C) will not affect disposable income. D) will not affect the size of the multiplier.

If the inflation rate in 2013 was 2.5 percent, and because of that people expect the inflation rate in 2014 will also be 2.5%, these people are said to have

A) rational expectations. B) expectations of stagflation. C) adaptive expectations. D) expectations of supply shocks.