When the government funds a project that will create jobs, the funds for the project
A) are essentially free, because the project originated in the government sector.
B) will generate additional tax revenues that will pay for the project.
C) will have to be either taxed or borrowed from the private sector.
D) will leave private sector output and employment unchanged.
C) will have to be either taxed or borrowed from the private sector.
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A major factor in determining the rational expectation of inflation is
A) the size of the budget deficit. B) forecasts of the Fed's monetary policy. C) forecasts of fiscal policy. D) the previous month's unemployment rate. E) the recent past behavior of the stock market.
What is a necessary condition for being categorized as unemployed?
A) Being homeless B) Actively searching for a job C) Having no source of income D) Having no hope of finding a job in the foreseeable future
Which government entity calculates GDP in the United States on a quarterly basis?
A) the Treasury Department B) the Commerce Department C) the Federal Reserve D) all of the above E) none of the above
If a firm is a monopsonistic hirer of labor,
a. its marginal expense for labor is greater than the market wage. b. its marginal expense for labor is equal to the market wage. c. its marginal expense for labor is less than the market wage. d. it is a price taker in the labor market.