You Are Hired by the Bureau of Economic Analogies (BEA)

question 286

Multiple Choice

You are hired by the Bureau of Economic Analogies (BEA) as an economic consultant. The chairperson of the BEA tells you that he believes the current unemployment rate is too high. The unemployment rate can be reduced if aggregate output increases. He wants to know what policy to pursue to increase aggregate output by $500 billion. The best estimate he has for the MPC is 0.7. Which of the following policies should you recommend?

• A) Decrease government spending by $75 billion.
• B) Reduce taxes by $214.3 billion.
• C) Reduce taxes by $314.3 billion and to decrease government spending by $500 billion.
• D) Reduce the budget deficit by $300 billion.

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Definitions:

Response Rates

The percentage of people who answer or participate in a survey out of the total number of people contacted or selected for the study.

Human Communication

Human communication involves the exchange of information between individuals through verbal, non-verbal, written, and digital mediums to convey and understand messages.

Interviews

A qualitative research method involving direct, face-to-face conversation between the interviewer and the respondent to gather information or opinions.

Nonprobability Sampling

A sampling method where elements of the population do not have a known or equal chance of being selected, often used for exploratory research or when probability sampling is not feasible.