Macroeconomics: US Fiscal and Monetary Policy - US Fiscal and Monetary Policy - Fiscal Multipliers
3 important questions on Macroeconomics: US Fiscal and Monetary Policy - US Fiscal and Monetary Policy - Fiscal Multipliers
This is the ratio of a change in real GDP to the change in government purchases that causes it. This number tells you how much real GDP changes in response to a change in government purchases.
Government Purchases Multiplier
True or False. Cutting taxes raises GDP and raising taxes decreases GDP.
True
True or False. A tax raise is a positive change (+) in taxes. This results to a decrease in GDP.
True
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