Levothyroxine side effect?

No supply-side effect vs. supply side effect; real & potential GDP; etc. ?

• 1. Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side effect versus no supply-side effect. Compared to no supply-side effect, including a supply-side effect for the decrease in tax rates will cause the price level to increase ______ and real GDP to increase ______. A.) less; less B.) more; less C.) more; more D.) less; more 2.) An increase in the sensitivity of private spending (consumption, investment, and net exports) to changes in the interest rate _____ the government purchases multiplier A.) may increase or decrease B.) will increase C.) will not change D.) will decrease 3. Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion. To move the economy back to potential GDP, Congress should A.) lower taxes by $200 billion B.) lower government purchases by an amount less than $200 billion C.) raise taxes by $200 billion D.) raise taxes by an amount more than $200 billion E.) lower government purchases by $200 billion.

• Answer:

  d) d) a)