Question: Multiple choice question on macroeconomics QUESTION 1 Plans for production are usually in place months in advance and are likely set before signs of weakness
Multiple choice question on macroeconomics



QUESTION 1 \"Plans for production are usually in place months in advance and are likely set before signs of weakness in consumer spending and exports emerge. Therefore, while an increase in production coupled with low spending is not a problem, if it happens repeatedly, inventories will and firms will " 0 rise; reduce production 0 fall; raise production 0 fall; reduce production 0 rise; raise production QUESTION 2 Many US states have state constitutions which prohibit them from running state government deficits. This Hint: This question may require some thought. enhances the beneficial effects of the states' programs since it ensures they are always fully funded. o enhances the beneficial effects of the federal government's stimulus program during recessions since state spending must be reduced and will not crowd out federal spending. O reduces the beneficial effects of the federal government's stimulus program, since states with such constitutions will need to cut spending and raise taxes during a recession to avoid a deficit, thereby offsetting some of the multiplier process associated with the federal program. has no bearing on the effects of the federal government's stimulus program. O enhances the beneficial effects of state spending during recessions in states without such constitutional provisions, since it ensures that their states will be better off, financially, and they can sell their goods to those states that are required to balance their state budgets.QUESTION 3 \"The comptroller estimates that the new Amazon regional office in the city will mean 1400 direct jobs, and, depending on the employment multiplier, another 1800 to 2400 indirect jobs, in shops and businesses located throughout county.\" The magnitude of the employment multiplier described here is 0 Between 3200 and 3800 0 Above 1400 but less than 3800 O 1400 0 More than 3800
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
