When Calculating the Effect of a Tax Cut on Equilibrium

question 87

Multiple Choice

When calculating the effect of a tax cut on equilibrium GDP,the tax multiplier is always

• A) 2.0 smaller than the spending multiplier
• B) 1.0 smaller than the spending multiplier and negative in sign
• C) positive
• D) positive and larger than the spending multiplier
• E) negative and larger than the spending multiplier

Recognize methods to minimize experimenter expectancy effects and understand their importance in maintaining internal validity.

Understand the concept of project crashing and its impact on project cost and schedule.

Calculate crash cost per period for project activities.

Analyze critical paths and identify activities for potential crashing within specified budget constraints.