A $10 Billion Reduction in Taxes Increases Real GDP by $60

question 81

Multiple Choice

A $10 billion reduction in taxes increases Real GDP by $60 billion.Assuming a constant price level,what does the tax multiplier equal?

• A) 70
• B) 6
• C) 50
• D) 0.17
• E) 0.83

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Definitions:

Human Resource Utilisation

The effective and efficient use of the workforce in an organization through strategies that enhance productivity and ensure employees' skills are aptly matched with job requirements.

Economic Times

A general term that can refer to the current state of the economy, often used to discuss economic conditions or a newspaper covering economic news.

Functional Manager

A manager responsible for a specific department or function within an organization, such as finance, marketing, or operations.

Single Area

Concentrating or focusing efforts, resources, or operations in one particular or specific domain or location.