Economists Agree That the Multiplier Effect on Real Output Is

question 111

Multiple Choice

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

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

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Definitions:

Globalisation

The worldwide interdependence of resource flows, product markets, and business competition.

Outsourcing

Is a decision to allow one or more of a company’s value chain activities to be performed by onshore independent specialist companies that focus all their skills and knowledge on just one kind of activity.

Bona Fide

Genuine; real; without intention to deceive or any fraud involved.