When government spending increases by $1, planned expenditures increase by $1 A. times the spending multiplier and the equilibrium level of income will increase by $1. B. and the equilibrium level of income will increase by $1. C. and the equilibrium level of income will increase by less than $1. D. and the equilibrium level of income will increase by $1 times the spending multiplier. When taxes are cut by $1, planned expenditures A. increase by $1 and the equilibrium level of income will increase by $1 times the tax multiplier. B. increase by less than $1 and the equilibrium level of income will increase by $1 times the tax multiplier. C. increase by $1 and the equilibrium level of income will increase by $1 times the spending multiplier. D. decrease by $1 and the equilibrium level of income will decrease by $1 times the tax multiplier.

1) and the equilibrium level of income will increase by $1 times the spending multiplier

2) increase by less than $1, and the equilibrium level will increase by $1 times the tax multiplier

Explanation:

1) Given that increase in government spending leads to increase in planned expenditure. The increased amount will therefore be multiplied with spending multiplier to get equilibrium income level. Since government spending increases by $1 which increases the planned expenditure by $1, therefore to get equilibrium income level, $1 will be multiplied with spending multiplier.

2) When the tax rate are cut planned expenditure is expected to increase. The amount cut from tax is multipled by the tax multiplier to get equilibrium income level. Therefore if taxes are by $1 which leads to an increase in the planned expenditure by less than $1. To get equilibrium income level, $1 will be therefore be multiplied with tax multiplier.

what

explanation:

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know