[Online Document Assignment:]
EIA Activity: Austerity and the Multiplier
Click on the links on the right to answer the following questions.
Use Link 1 to answer the following questions. True or False: In the third quarter of 2014, the GDP in Greece expanded 0.70%.
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| B. |
True or False: From 1995 until 2014, the GDP growth grate in Greece averaged 0.50%.
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| B. |
Use Link 2 to answer the following questions. True or False: In the third quarter of 2014, the GDP in Spain expanded 0.70%.
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| B. |
True or False: Spain is the largest economy in the Euro Zone.
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| B. |
Use Link 3 to answer the following question. True or False: The Syriza party in Greece has promised anti-austerity measures.
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| B. |
Use Link 4 to answer the following question. True or False: Spain has proposed reducing taxes for the 2015-2016 year as an anti-austerity measure.
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| B. |
Suppose Congress passed sharp cuts in spending in addition to significant tax increases in order to help balance the budget. How would a 40%income tax increase impact you personally? Discuss.
Which fiscal policy measure do you think is least popular, sharp spending cuts or raising taxes? Discuss.
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