The multiplier effect occurs when an initial increase (or decrease) in autonomous expenditure produces a greater increase (or decrease) in real GDP than the initial change. In which type of discretionary fiscal policy does the multiplier play a role

b. both government spending changes and tax changes

Explanation:

The Multiplier effect as described in the question applies when the Government uses either taxes of Government Spending to influence the economy. When Taxes are imposed or relaxed however, it has been shown that they provide a less multiplier effect than when the Government uses Spending as an influence.

This is because when the Government spends it leads to a ripple effect that creates more income but when taxes are cut and people have more disposable income, it is up to them how much of that to save and how much to spend and they usually do not spend all of it.

answerdata mart;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.