. Explain why the tax multiplier is different from the government purchases multiplier, in both sign and relative magnitude.

Explanation:

This is the case because the tax multiplier has a negative sign due to the negative magnitude or lesser impact it has on the economy.

For example, when government cut taxes income may increase, however not everyone of those income will be spent in the economy because some of it may be saved.

However, a change in government purchases will have a positive impact as well as larger effect on the economy than a mere change in the tax multiplier.

In summary, the tax multiplier is different from the government purchases multiplier, in both sign and relative magnitude because of the varying degrees of their usage.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.