The government spending multiplier is likely to be smaller during periods of
A. low output and high unemployment.
B. high output and low unemployment.
C. low output and low unemployment.
D. high output and high unemployment.
Answer: B
Economics
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One difference between moral hazard and adverse selection is
a. Moral hazard has to do with unobservable characteristics of individuals b. Adverse selection has to do with unobservable actions of individuals c. Adverse selection is when individuals change their behaviors because of a contract d. Adverse selection is when you choose the wrong answer on a test
Economics
To maximize its profits, a monopoly should produce the quantity where its marginal cost equals its:
a. average total cost. b. average variable cost. c. demand. d. marginal revenue.
Economics