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Author Question: Economists assume that households and firms share two important characteristics. One of these ... (Read 103 times)

mia

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on: Jun 30, 2018
Economists assume that households and firms share two important characteristics. One of these characteristics is that
 
  A) they smooth spending during recessions and expansions.
  B) they act rationally to meet their objectives.
  C) they only consider the present when making decisions.
  D) the growth rate in spending by each is equally volatile.

Question 2

Often, the farther real GDP is below potential GDP,
 
  A) the smaller the multiplier effect.
  B) the larger the multiplier effect.
  C) the less effective is the multiplier effect.
  D) the less meaningful is the multiplier effect.


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sokh

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

B


mia

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

cdmart10

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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