The crowding out effect of expansionary fiscal policy refers to which of the following?

A. a reduction in private sector planned investment
B. the reduction in the size of the budget deficit
C. a reduction in interest rates
D. the reduction in the size of the inflationary gap


Answer: A

Economics

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The figure above shows the market for tickets to the Super Bowl the day of the game. Suppose the government imposes an entertainment tax of $100 per ticket

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Although monopoly and perfect competition result in different market outcomes, the fact that firms in both market structures work to maximize their profits ensures that resources are allocated efficiently in both situations

Indicate whether the statement is true or false

Economics

The assumption that wages change more slowly than prices implies that the

A) aggregate demand curve has a positive slope. B) aggregate demand curve has a negative slope. C) Phillips Curve has a negative slope. D) Phillips Curve has a positive slope.

Economics