Refer to the information. The addition of a $100 billion lump-sum tax:
The following information is for a closed economy:
A. reduces the MPC and increases the multiplier.
B. increases the MPC and decreases the multiplier.
C. increases both the MPC and the multiplier.
D. has no effect on either the MPC or the multiplier.
D. has no effect on either the MPC or the multiplier.
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In the above figure, the shift in the demand curve from D to D1 can be the result of
A) a decrease in income if pizza is a normal good. B) a decrease in the price of a sub sandwich, a substitute for pizza. C) an increase in the price of soda, a complement to pizza. D) an increase in the number of teenagers, all of whom demand more pizza than do other age groups. E) new technology that increases the profit from producing pizza.
Greater labor force participation for households at higher real wage rate is one reason that
A) the demand for labor curve is upward sloping. B) the demand for labor curve is downward sloping. C) the supply of labor curve is upward sloping. D) the supply of labor curve is downward sloping.