According to Computer Estimates Using a Traditional Macroeconomic Model,the Obama

question 11

Multiple Choice

According to computer estimates using a traditional macroeconomic model,the Obama administration found that the multiplier for tax cuts and government expenditures were respectively

• A).99 and 1.59.
• B)1.59 and .99
• C)1.3 and 1.7
• D)1.7 and 1.3

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Definitions:

Competitive Economic Behavior

Actions exhibited by businesses or individuals in an attempt to achieve a market advantage, often through price, quality, and service.

Market Economies

Economic systems in which decisions about production, investment, and distribution are based on supply and demand, and prices of goods and services are determined in free markets.

Basic Question

A fundamental inquiry that establishes the underlying principles or elements of a topic or issue.

Distribution of Income

The way in which a nation’s total earnings are divided among its population, or how the nation's wealth is shared among individuals.