The Government Expenditure Multiplier and the Tax Multiplier Are

question 27

Multiple Choice

The government expenditure multiplier and the tax multiplier are

• A)identical in size.
• B)different in size and the government expenditure multiplier is larger.
• C)not comparable because the government expenditure multiplier applies to aggregate demand and the tax multiplier applies to aggregate supply.
• D)different in size and the tax multiplier is larger.
• E)not comparable because the government expenditure multiplier applies to aggregate supply and the tax multiplier applies to aggregate demand.

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