The desired tax cut to close a GDP gap is given by
A) AD shortfall × MPS.
B) Desired fiscal stimulus ÷ MPC.
C) AD shortfall ÷ MPC.
D) Desired fiscal stimulus × MPC.
Correct Answer:
Verified
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Q37: The AD shortfall is the amount of
Q38: Which of the following is true when
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Q40: Which of the following formulas is used
Q42: Which of the following explains why the
Q43: Which of the following is the best
Q44: The balanced budget multiplier is equal to
A)0.
B)1.
C)1
Q45: The balanced budget multiplier says that
A)An increase
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