Which of the following contributes to the popularity of the argument that government spending expands employment?
A) The employment generated by the additional spending can be accomplished without increases in taxes or borrowing.
B) The employment generated by the additional spending is highly visible, while the employment crowded out by taxing, spending, and borrowing is largely unseen.
C) The employment generated by the additional spending is not easily seen, while the employment crowded out by taxing, spending, and borrowing is highly visible.
D) Higher taxes will be popular if they finance spending that expands employment.
B) The employment generated by the additional spending is highly visible, while the employment crowded out by taxing, spending, and borrowing is largely unseen.
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GDP tends to rise and fall during economic fluctuations but other measures follow the same pattern. One of these measures is
A. the annual precipitation rate. B. the growth of the money supply. C. the inflation rate. D. the unemployment rate.
Rent controls are
A) when rents are set above the market clearing level to aid landlords. B) used to provide incentives to contractors to build new apartments. C) used to generate revenue for the local government. D) when rents are set below the market clearing level.
Which of the following is likely to improve a person's income?
a. increased productivity b. investing in human capital c. possessing a special talent or skill d. all of the above
The percentage of a change in income that is spent domestically is:
a. the sum of the MPC and the MPI. b. the sum of the MPC and the MPS. c. the difference between the MPC and the MPI. d. the product of the MPC and the MPI. e. the sum of the MPS and the MPI.