QUESTION 21 17.6 points Match these concepts Wealth effect Multiplier effect Crowding out effect. Autonomous consumption...

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QUESTION 21 17.6 points Match these concepts Wealth effect Multiplier effect Crowding out effect. Autonomous consumption Laff

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Answer 1

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Wealth effect= B) Spending without income

multiplier effect=J) 1/MPS

crowding out effect=C) Fall in investment due to increase in G

autonomous consumption=D) Explanation of the slope of AD Curve

laffer curve=H) Lower tax rates lead to highter tax revenues

automatic stabilizer=I) transfer payments

permanent income=E) long run average level of income

closed economy=A) Economy without foreign sector

capital deepening=F) increase capital per worker

rule 70=G) years to double output

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QUESTION 21 17.6 points Match these concepts Wealth effect Multiplier effect Crowding out effect. Autonomous consumption...

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