Economists Agree That the Multiplier Effect on Real Output Is

question 3

Multiple Choice

Economists agree that the multiplier effect on real output is close to zero when

• A)inflation is very low in an economy
• B)an economy is at or near full employment
• C)the national debt is relatively small.
• D)"shovel-ready" projects exist.
• E)an economy is in an inflationary gap.

---

Definitions:

Employer Contributions

Payments made by an employer on behalf of their employees, typically into pension plans or health insurance.

Voluntary Benefit

Optional, employee-paid benefits offered by employers, allowing employees to tailor benefits packages to their needs.

Child Care Allowance

Financial support provided by an employer or government to help offset the costs of child care for employees or citizens.

Pensions and Savings Plans

Retirement benefit plans sponsored by employers to provide employees with financial security in their retirement years.