30. In Country A, the government increases its expenditures by NIS 200 million. If the MPS...

 

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30. In Country A, the government increases its expenditures by NIS 200 million. If the MPS is equal to 0.5, the government's action real GDP by (a) Increases; NIS 400 million. (b) Decreases; NIS 400 million. 31. Automatic stabilizers are designed to: (a) Promote global trade. (b) Simplify the tax system. (c) Increases; NIS 200 million. (d) Has no effect on; NIS 0. (a) Recognition time lag. (b) Action time lag. (c) Moderate changes in disposable income. (d) Stabilize the bipartisan budget process. 32. A recession begins in January but government policy makers do NOT reach an agree- ment/decision that a recession had in fact begun until June. This is an example of a(n): (c) Effect time lag. (d) Quick time lag. 30. In Country A, the government increases its expenditures by NIS 200 million. If the MPS is equal to 0.5, the government's action real GDP by (a) Increases; NIS 400 million. (b) Decreases; NIS 400 million. 31. Automatic stabilizers are designed to: (a) Promote global trade. (b) Simplify the tax system. (c) Increases; NIS 200 million. (d) Has no effect on; NIS 0. (a) Recognition time lag. (b) Action time lag. (c) Moderate changes in disposable income. (d) Stabilize the bipartisan budget process. 32. A recession begins in January but government policy makers do NOT reach an agree- ment/decision that a recession had in fact begun until June. This is an example of a(n): (c) Effect time lag. (d) Quick time lag.

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30 Answer is option a that is Increases NIS 400 Million Since Spending Multiplier 1MPS 105 2 Change ... View the full answer