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 ________, the government purchases multiplier would be lower than the administration's estimate, and economists Lawrence Christiano, Martin Eichenbaum, and Sergio Rebelo argued that ________, the multiplier would be higher than the administration's estimate.
A) during wartime; when short-term interest rates are near zero
B) during a recession; when the inflation rate is relatively low
C) when the unemployment rate is high; when the value of the dollar is depreciating against foreign currencies
D) when the federal budget is in surplus; when government transfer payments are declining
Question 2
Of the 840 billion American Recovery and Reinvestment Act stimulus package which was enacted in 2009, the largest tax cuts occurred in which category?
A) infrastructure tax cuts B) business tax cuts
C) individual tax cuts D) energy tax cuts
Intramuscular drug administration: (b) the administration site is prepped
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