Consider a Macro Model with a Constant Price Level and Demand-Determined

question 110

Multiple Choice

Consider a macro model with a constant price level and demand-determined output.A rise in the net tax rate ________ the simple multiplier and ________ equilibrium national income.

• A)lowers; has no effect on
• B)lowers; lowers
• C)lowers; raises
• D)raises; raises
• E)raises; has no effect on

---

Definitions:

Expected Frequency

The predicted number of times an event is anticipated to occur within a specified period based on probability.

Chi-Square Test

A statistical method used to determine if there is a significant association between two categorical variables.

Expected Frequency

The predicted number of times an outcome is expected to occur in a statistical experiment based on the probabilities of all possible outcomes.

Sample Size

The number of observations or data points collected in a sample for the purpose of statistical inference.