Classical macroeconomic theorists believed that if the economy was in a slump, the government should ________.
A. increase spending
B. maintain a balanced budget
C. lower taxes
D. print money
Answer: B
You might also like to view...
The nation's supply of productive resources increases if
A) investment is greater than depreciation. B) investment equals depreciation. C) investment is less than depreciation. D) Both answers A and B can be correct. E) None of the above answers is correct because the relationship between investment and depreciation has no bearing on the amount of the nation's productive resources.
Suppose the demand for saline solution is perfectly inelastic for contact lens wearers
If the government imposes a tax on saline solution, what occurs? Be sure to tell what happens to the price paid by the buyers and discuss the incidence of the tax.
SNAP (food stamps) and Medicaid are examples of:
a. money transfers b. resource earnings c. in-kind transfers d. tax expenditures
Direct expenditure offsets are
A. the discretionary changing of government expenditures to achieve a higher employment level. B. the decrease in spending in the private sector in areas in which the government is competing. C. the same as the Ricardian equivalence theorem. D. the decrease in planned investment that occurs as the result of an increase in interest rates.