Economists who believe in complete crowding out would argue that
A) jobs created or saved because of increased government spending will be matched by an equal number of jobs created by an increase in private sector spending.
B) jobs created or saved because of increased government spending will be completely offset by jobs destroyed by a decline in private sector spending.
C) government policies intended to stimulate aggregate demand will be completely ineffective.
D) government policies intended to stimulate aggregate demand will tend to be effective.
E) a and c
B
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Answer the following statements true (T) or false (F)
1. A considerable degree of government control of production and distribution exists in a command economy. 2. The profit motive is one characteristic of a command economy. 3. Competition serves as a regulator in a market economy. 4. In a market economy, prices serve as a rationing mechanism.
If the level of interest rates paid on time deposits rise relative to that paid by money market accounts, ceteris paribus, individual will
A) reduce their real money balances. B) first reduce then increase their real money balances. C) increase their real money balances. D) hold the same amount of money.
Which of the following is not one of the four major sectors of the economy to which GDP is allocated?
a. consumer b. investment c. agriculture d. government
Give an example of how economics can be used in either a marriage, politics, or education.
What will be an ideal response?