1) The effects of a change in government expenditures is multiplied throughout an economy
a) only when there is a decrease in expenditure.
b) only when there is an increase in expenditure.
c) because government expenditure generates changes in consumption expenditure.
d) because taxes are left unchanged.
I think the answer is c here, but I'm not sure.
2) Income taxes and transfer payments
a) increase the rate of long-run income growth.
b) act like economic shock absorbers and stabilize fluctuations in income.
c) increase the effects of investment and imports.
d) prevent the economy from moving toward equilibrium.
I think it's either b or c, but I'm not sure at all.
3) Using the AD-AS model, an increase in government expenditure
a) has a full multiplier effect on real GDP, leaving the price level unchanged in the long run.
b) has no impact on real GDP, but will increase potential GDP.
c) increases both real GDP and the price level.
d) has no impact on real GDP.
I'm pretty sure it has an impact on GDP, but not sure about the price level.
-Thanks for any help.
Few Economic questions (macroeconomics)?
U see when a girl moose and a guy moose love each other very much they go to walmart and they look at the teddy bears, when they find a teddy bear they want they take it to costumer service and they ask for a price check. The staff member starts to talk about the economy, and how Pi (3.14) is fluxed with a dragon ball Z trading card that is then shipped to Jebuddie (a country in Africa) when it gets to Jebuddie it is then raped by Santa Clause and Micheal Jackson. Then after (69) and vanilla sex they move on to security, where they have to get a search, (a full cavity search). When they are done with there sexy, hot SMBD stuff, they go to a mental hospital named Acadia. There they meet a sexy Latino pool boy named Edwardo who has to wear a uniform approved by the board of education (Obama) who makes him wear a G string. After that they go to the store again and they buy whip cream, and strawberry's. Soon after the events at the store they go to hollywood and see a plastic surgeon who points out to them that they need to go to a zebra that is a stripper named Mortikie. Then when the Pigeon is finished making the bread with the mail man, ( inside joke). The boyfriend that is nagging me, and is about to (events censored.).............
