In the short run, the impact of a $50 billion tax package on GDP will be

a. greater than $50 billion because of the multiplier effect
b. less than $50 billion because of the tax code
c. greater than $50 billion because of the tax code
d. exactly $50 billion
e. greater than $50 billion because of crowding out

A

Economics

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U.S. paper currency is considered representative commodity money because it can be redeemed for gold by the U.S. government

Indicate whether the statement is true or false

Economics

When the federal government makes no attempt to take corrective action, markets return a recessed economy to full employment levels of production by

(a) laying off workers. (b) lowering wages. (c) dropping prices. (d) doing all of the above.

Economics