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19) The government expenditure multiplier and the tax multiplier are A) differen

ID: 1208784 • Letter: 1

Question

19) The government expenditure multiplier and the tax multiplier are

A) different in size and the government expenditure multiplier is larger.

B) different in size and the tax multiplier is larger.

C) not comparable because the government expenditure multiplier applies to aggregate supply and the tax multiplier applies to aggregate demand.

D) identical in size.

E) not comparable because the government expenditure multiplier applies to aggregate demand and the tax multiplier applies to aggregate supply.

Explanation / Answer

19) The government expenditure multiplier and the tax multiplier are

A) different in size and the government expenditure multiplier is larger.

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