In Figure 3-7 above, the multiplier for a change in autonomous taxes is

A) 5.
B) 4.
C) 2.50.
D) 1.

B

Economics

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To measure the "core" inflation rate, the Bureau of Economic Analysis uses a price measure that

A. excludes food and energy prices because the prices of these items can be volatile. B. includes food and energy prices because the se items account for a significant portion of the typical consumer's expenditures. C. is made up of a fixed basket that includes durable goods, non-durable goods, and services. D. includes prices for different components of gross private domestic investment, government spending, and personal consumption expenditures.

Economics

The substitution effect of a price change describes what happens to the shift in demand for a good when its price changes

a. True b. False

Economics