To compensate for the possibility of indirect crowding? out, a government engaging in expansionary policy aimed at eliminating a recessionary gap could

A) reduce taxes rather than increase government spending.
B) increase spending less than the simplest Keynesian model would predict.
C) both reduce taxes and reduce spending to be able to achieve full employment.
D) increase spending more than the simplest Keynesian model would predict.


Answer: D) increase spending more than the simplest Keynesian model would predict.

Economics

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Explain the impact, if any, of each of the following on the production possibilities curve:

a. Europe's population fell by 30 to 60 percent following an outbreak of bubonic plague, also known as Black Death, in the fourteenth century. b. In the next 20 years, a sizeable proportion of the United States labor force is expected to include many people who are above the age of 65 . c. Canada recently discovered large reserves of shale gas (shale gas is natural gas that is trapped in fine-grained sedimentary rock).

Economics

Strategic trade policy

a. argues for protecting certain industries that benefit society but that may not thrive in a free trade environment b. advocates quotas on imports of high-tech products c. defends the use of tariffs to protect monopolistically competitive industries d. has been used to justification protection of infant industries e. explains why less developed countries export more raw materials than services

Economics

As population of a region increases, the consumer's demand curve for a product will shift

Indicate whether the statement is true or false

Economics

Find the BLS's rate of unemployment from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000

a. 17.5 percent b. 23.3 percent c. 24.6 percent d. 28.8 percent e. 38.3 percent

Economics