Rising health care spending is a problem confronting the federal government because
A) it is the government's job to make sure everyone receives the health care they need.
B) federal spending on health care has increased rapidly over the last thirty years.
C) the federal-funded VA hospitals have been expanding faster than government revenues can provide for.
D) the medical expenses of federal employees has been rising at a rate much faster than for non-federal workers.
Answer: B
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Assume that the full-employment level of output is $1,000 and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $1,100 and, at the price level of 100, current aggregate demand is $1,200. If the government moves the economy back to the full-employment level of output by reducing government purchases by $50, then the expenditures multiplier equals
A. 4. B. 5. C. 2. D. 10.
The credit demand curve is:
A) vertical. B) downward sloping. C) horizontal. D) upward sloping.
In the economic way of thinking, capital contributes to
A) the exploitation of labor. B) wealth. C) greed. D) macroeconomic inefficiency. E) none of the above.
Assuming the basic purpose is to raise additional revenue, should government levy an excise tax on cigarettes whose demand is highly inelastic or on a product whose demand is highly elastic? Are there any other reasons to levy such a tax?
What will be an ideal response?