In Preparing Their Estimates of the Stimulus Package's Effect on GDP,Obama

question 161

Multiple Choice

In preparing their estimates of the stimulus package's effect on GDP,Obama administration economists estimated a government purchases multiplier of 1.57.Economist Robert Barro argues that during wartime,the government purchases multiplier would be ________ the administration's estimate,and economists Lawrence Christiano,Martin Eichenbaum,and Sergio Rebelo argued that when short-term interest rates are near zero,the multiplier would be ________ the administration's estimate.

• A)higher than;lower than
• B)lower than;higher than
• C)higher than;equal to
• D)equal to;lower than

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Definitions:

Mediterranean Sea

An almost entirely land-enclosed sea that connects to the Atlantic Ocean, bordered by the Mediterranean region.

Delta

A delta is a landform at the mouth of a river where it spreads out into several branches before entering a larger body of water, typically formed from sediment deposition.

Tectonics

The branch of geology concerned with the structure and motion of the Earth's crust and large scale structural features such as mountains and ocean basins.

Bedrock

The layer of solid rock located beneath the surface soil or sediment, acting as a foundation for terrestrial landscapes.