According to the Application, the argument that the broken window is good for society
A) works in the Keynesian world when the economy is operating below full employment.
B) never works in the Keynesian or classical worlds regardless of where the economy is operating relative to full employment.
C) works in the classical world when the economy is operating at full employment.
D) works in both the Keynesian and classical worlds regardless of where the economy is operating relative to full employment.
A
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When the economy operates below full employment, an increase in government spending must crowd out another component of GDP
Indicate whether the statement is true or false
If a tariff is imposed on imports of shrimp into the United States, U.S. consumer surplus from shrimp will ________ and U.S. producer surplus from shrimp will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) increase; not change
The level of real GDP in the long run is
A) potential GDP. B) determined solely by aggregate demand. C) affected by changes in the price level. D) the same as the level of nominal GDP in the long run.
Conditional cash transfer programs are programs in which:
A. financial support is given only to people who engage in certain actions. B. financial support is given only to people who have paid into the program for a minimum amount of time. C. financial support is given only to people who agree to pay it back at reduced interest to the government in the future. D. None of these is true.