The tax multiplier is calculated as 1 / (1 - b).
Indicate whether the statement is true or false
Question 2
Most economists agree with which of the following?
A) Passive policymaking is likely to exert sizable long-run effects on real GDP.
B) Active policymaking is likely to exert sizable long-run effects on real GDP.
C) Active policymaking is unlikely to exert sizable long-run effects on real GDP.
D) none of the above
