Question : 18.4   The Government Purchases and Tax Multipliers 1) Economists refer to : 1266985

 

18.4   The Government Purchases and Tax Multipliers

1) Economists refer to the series of induced increases in consumption spending that result from an initial increase in autonomous expenditures as the ________ effect.

A) multiplier

B) expenditure

C) consumption

D) aggregate demand

2) The multiplier effect refers to the series of

A) autonomous increases in consumption spending that result from an initial increase in induced expenditures.

B) induced increases in consumption spending that result from an initial increase in autonomous expenditures.

C) autonomous increases in investment spending that result from an initial increase in induced expenditures.

D) induced increases in investment spending that result from an initial increase in autonomous expenditures.

3) The aggregate demand curve will shift to the right ________ the initial increase in government purchases.

A) by less than

B) by more than

C) by the same amount as

D) sometimes by more than and other times by less than

4) The aggregate demand curve will shift to the left ________ the initial decrease in government purchases.

A) by less than

B) by more than

C) by the same amount as

D) sometimes by more than and other times by less than

5) The aggregate demand curve will shift to the right ________ the initial decrease in taxes.

A) by less than

B) by more than

C) by the same amount

D) sometimes by more than and other times by less than

Figure 18-4

 

 

6) Refer to Figure 18-4.  In the graph above, the shift from AD1 to AD2 represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B ________ $50 billion.

A) would be equal to

B) would be greater than

C) would be less than

D) may be greater than or less than

7) A change in consumption spending caused by income changes is ________ change in spending, and a change in government spending that occurs to improve roads and bridges is ________ change in spending.

A) an induced; an autonomous

B) an expansionary; a contractionary

C)  an autonomous; an induced

D) a contractionary; an expansionary

8) The government purchases multiplier equals the change in ________ divided by the change in ________.

A) government purchases; equilibrium real GDP

B) equilibrium real GDP; government purchases

C) government purchases; consumption spending

D) consumption spending; government purchases

9) The tax multiplier equals the change in ________ divided by the change in ________.

A) taxes; equilibrium real GDP

B) equilibrium real GDP; taxes

C) taxes; consumption spending

D) consumption spending; taxes

10) Which of the following would increase the size of the government purchases multiplier?

A) an increase in the tax rate

B) an increase in the quantity of imports purchased by households from an increase in income

C) a decrease in the amount of consumption spending by households from an increase in income

D) a decrease in the amount saved by households from an increase in income

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more