If the Tax Multiplier Is -1

question 168

Multiple Choice

If the tax multiplier is -1.5 and a $200 billion tax increase is implemented,what is the change in GDP,holding everything else constant? (Assume the price level stays constant.)

• A)a $300 billion decrease in GDP
• B)a $300 billion increase in GDP
• C)a $30 billion increase in GDP
• D)a $133.33 billion decrease in GDP
• E)a $133.33 billion increase in GDP

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Definitions:

Power Supply Problems

Issues related to the device that converts power from a source to the correct voltage, current, and frequency to power a computer, leading to operational failures or erratic behavior.

Radio Frequency Interference

Disturbance generated by an external source that affects an electrical circuit by electromagnetic induction or conduction.

Low Humidity

A condition where the air contains relatively little moisture, which can affect various electronic equipment and manufacturing processes.

Hibernate

A power-saving mode for computers where the current state (open applications, work in progress, etc.) is saved to the hard disk before turning off the device.