Supply-siders feel that high levels of government spending:
a. assist private sector investing by creating infrastructure.
b. have no impact on private sector investment.
c. complement private spending.
d. cause private sector investment to decline because of crowding out.
e. cause private sector spending to decrease because of increases in corporate taxes to finance the government spending.
d
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The making and selling of a pencil for ten cents would likely NOT be possible, but for
A) relative advantage. B) the production possibilities curve. C) absolute advantage. D) the division of labor.
Using free public space means that sidewalk vendors earn long-run economic profits
a. True b. False
Congress and the president carry out fiscal policy through changes in
A) interest rates and the money supply. B) taxes and the interest rate. C) government purchases and the money supply. D) government purchases and taxes.
If greater stock prices can lead to greater investment spending, should central bankers ever worry about stock prices becoming too high?
What will be an ideal response?