A decrease in government spending will result in a decrease in the price level and a decrease in real GDP in the long run
Indicate whether the statement is true or false
FALSE
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In the figure above, households
A) receive transfers directly from governments. B) buy goods and services from governments in goods markets. C) receive transfers from governments through factor markets. D) sell factors of production to governments. E) pay taxes to governments through factor markets.
During a recession, the percentage workers who are part time for economic reasons
A) increases more rapidly than the percentage of part-time workers. B) decreases more rapidly than the percentage of part-time workers. C) increases proportionately with the percentage of part-time workers. D) decreases proportionately to the percentage of part-time workers. E) does not change even though the percentage of part-time workers increases.
The principal objective of WTO is to:
a. reduce the level of all tariffs. b. establish fair prices for all goods traded internationally. c. prevent the trading of services across nations' borders. d. encourage countries to establish quotas.
If the economy is at full employment:
A. the aggregate demand curve cannot shift to the right. B. government spending causes crowding in. C. Keynesians argue that any crowding-out effect is small. D. crowding out is complete.