Assume that the full-employment level of output is $1,000 and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $1,100 and at the price level of 100 current aggregate demand is $1,200. If the government moves the economy back to the full-employment level of output by increasing taxes by $50, then the expenditures multiplier equals:
A. 2. B. 5. C. 4. D. 10.
+1
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume that the full-employment level of output is $1,000 and the price level associated with full-employment output is 100. Also assume ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.