Refer to situation 4-1. an economist would have most likely predicted that once price controls were abolished in the spring of 1974, a)the price of gasoline would decline sharply. b)the surplus of gasoline would go away. c)the shortage of gasoline would go away. d)the demand for gasoline would decrease. e)both c and d

Suppose the government enacts a stimulus program composed of $600 billion of new government spending and $300 billion of tax cuts for an economy currently producing a gdp of $14 comma 000 billion. if all of the new spending occurs in the current year and the government expenditure multiplier is 1.5, the expenditure portion of the stimulus package will add nothing percentage points of extra growth to the economy. (round your response to two decimal places.)