If the economy is at full employment, then an increase in government spending:
A. would simply crowd out private spending.
B. would have too large an impact on real growth.
C. would cause deflation, which would increase unemployment.
D. is the right fiscal policy response.
Ans: A. would simply crowd out private spending.
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A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
If all of the returns to a resource are in the form of economic rent,
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a. True b. False Indicate whether the statement is true or false
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a. True b. False Indicate whether the statement is true or false