Those economists who argue that a significant amount of crowding out exists believe that the impact of expansionary fiscal policy will be _________________ by the crowding out. Their reasoning is that if the government increases purchases, and finances that spending by borrowing money, spending in the private sector will _______________, leading ultimately to _____________ in aggregate demand
A) strengthened; fall; little or no change
B) strengthened; rise; a significant rise
C) weakened; fall; little or no change
D) weakened; rise; a significant rise
C
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If there is a decrease in the price of the final good that an industry produces, the labor demand curve in the industry is likely to:
A) shift to the left. B) shift to the right. C) become vertical. D) become horizontal.
Tom, a government employee, has a defined benefit pension.He has worked for his employer for 35 years before retiring at age 65.His final salary was $85,000
Calculate how much of his final preretirement income a standard defined benefit pension plan would replace.
Which of the following is a criticism of the neoclassical counter-revolution school's approach?
a. markets are not competitive in developing countries. b. externalities are common in developing countries. c. inequality may worsen when interventions are removed in developing countries. d. all of the above.
Explain how "learning by doing" and transportation costs each affect the long-run average cost curve
What will be an ideal response?