Exhibit 11-2 -Refer to the Graph in the Exhibit.Consider an Economy Characterized

question 93

Multiple Choice

Exhibit 11-2

-Refer to the graph in the exhibit.Consider an economy characterized by the aggregate expenditure line.Suppose net taxes are independent of the level of real GDP.What is the tax multiplier?  

• A) 0
• B) 1
• C) 2
• D) 3

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Definitions:

McDonaldization

The process by which the principles of the fast-food industry, such as efficiency, calculability, predictability, and control, dominate other sectors of society.

American Values

The fundamental beliefs and principles that are held to be important in the United States, including liberty, democracy, equality, and individualism.

Global Transmission

The worldwide spread or transfer of cultures, diseases, information, technologies, and other phenomena.

Industrial Capitalism

An economic system characterized by private or corporate ownership of capital goods, production for profit, and competitive markets.