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:

Common Bacterial STI

Refers to sexually transmitted infections caused by bacteria that are prevalent among sexually active individuals, such as chlamydia, gonorrhea, and syphilis.

Infectious Disease

Illnesses caused by pathogenic microorganisms, such as bacteria, viruses, fungi, or parasites, which can be transmitted, directly or indirectly, from one person to another.

Chlamydia

A common sexually transmitted infection (STI) caused by the bacterium Chlamydia trachomatis, which can affect both men and women.

Greater Risk

A situation or condition that increases the likelihood of a negative outcome or hazard, often used in health and safety contexts.