Extra9for3 - Question 1 How does a tax cut affect the...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Question 1 How does a tax cut affect the expenditure schedule? a. It causes movement to the left along the schedule. b. It causes the schedule to shift upward. c. It causes movement to the right along the schedule. d. It causes the schedule to shift downward.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Question 2 In Japan in 2001, several analysts believed that the Japanese MPC was very low. If this is true, the value of the multiplier is a. smaller. b. larger. c. the same. d. magnified to a larger amount.
Background image of page 2
Question 3 A Keynesian economist would expect a supply-side tax cut to shift a. only the aggregate supply curve outward. b. only the aggregate demand curve outward. c. both the aggregate demand and aggregate supply curves outward. d. the aggregate supply curve outward and the aggregate demand curve inward.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Question 4 Suppose the federal government is considering alternatives to increase the level of real GDP in order to reduce unemployment. It can only do one of the following. Which will
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/08/2011 for the course ECON 2003 taught by Professor Staff during the Spring '11 term at Arkansas.

Page1 / 9

Extra9for3 - Question 1 How does a tax cut affect the...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online