Which of the following contributes to the popularity of the argument that government spending expands employment?
What will be an ideal response?
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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The official poverty rate for all persons declined sharply between 1959 and:
a. 2000. b. 1970. c. 1980. d. 1990.
Which of the following statements is false?
A) Not all economists are agreed as to whether government should bail out companies in financial trouble. B) Not all economists prefer a rule-based monetary policy to discretionary monetary policy. C) Rule-based monetary policy advocates often assert that discretionary monetary policy can be motivated by politics. D) The tax multiplier is always larger than the government spending multiplier.
The more inelastic is demand and supply, the:
A. larger is the efficiency loss of an excise tax. B. smaller is the efficiency loss of an excise tax. C. higher is the proportion of an excise tax paid by consumers. D. smaller is the proportion of an excise tax paid by producers.
Which of the following goods is likely to have the most elastic demand?
A. movie passes B. cigarettes C. electricity D. gasoline