The tax multiplier equals the change in ________ divided by the change in ________
A) consumption spending; taxes B) taxes; consumption spending
C) taxes; equilibrium real GDP D) equilibrium real GDP; taxes
D
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Which of the following would not be counted as a final good for inclusion in GDP?
a. a piece of glass bought by a consumer to fix a broken window b. a sheet of glass purchased by General Motors for the side window of a new car c. a sheet of glass produced this year and ending up in the inventory of a retail hardware store d. All of the above are counted.
A family on a trip budgets $800 for restaurant meals and fast food. The price of a fast-food meal is $20 and the family can afford 16 restaurant meals if they don't buy any fast food. How many fast-food meals would the family gain if they gave up one restaurant meal?
a. 1 b. 0.4 c. 2 d. 2.5 e. 5