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melinoma86 melinoma86
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5 years ago

Question 1.

If the government wants to reduce unemployment, government purchases should be ________ and/or taxes should be ________.



▸ increased; increased

▸ decreased; decreased

▸ decreased; increased

▸ increased; decreased

Question 2.

If the government spending multiplier is 2 and government purchases increase by $200 billion, output will increase by



▸ $100 billion.

▸ $400 billion.

▸ $500 billion.

▸ $1,600 billion.
Textbook 
Principles of Economics

Principles of Economics


Edition: 12th
Authors:
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wasanwasan
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melinoma86 Author
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5 years ago
Thank you
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