1.Suppose that a $30 billion increase in government spending increases Real GDP by $150 billion, and that a $10 billion tax reduction increases Real GDP by $40 billion.In this situation, the tax multiplier is _______________ the government spending multiplier.

less than

greater than

equal to

none of the above

2.If the annual growth rate in Real GDP is 2 percent, then it will take 50 years for the economy to double in size. T/F

3.If the AS curve is vertical, then it follows that (select all apply)

Real GDP changes will always arise from the supply side of the economy.

Real GDP changes will always arise from the demand side of the economy.

Price level changes will always arise from the demand side of the economy.

Price level changes will always arise from the supply side of the economy.