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:

Harvard

An elite private university located in Cambridge, Massachusetts, known for its prestigious academic programs and historical significance.

Black Person

Refers to an individual of African descent or having a dark skin complexion.

Functionalists

Scholars who view society as a complex system whose parts work together to promote solidarity and stability.

Society Disorganization

A state in which a society experiences a breakdown or weakening of its traditional social structures and norms, leading to social instability and problems.