When a decrease in one or more components of private spending completely offsets an increase in government spending, there is
A) incomplete crowding out.
B) zero crowding out.
C) complete crowding out.
D) complete crowding in.
E) either c or d
C
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Between August 2007 and July 2008, Brazil exported more than 3.5 billion pounds of coffee to the rest of the world. These exports mean that
A) Brazil has comparative advantage in coffee production. B) the rest of the world has comparative advantage in coffee production. C) the rest of the world has absolute advantage in coffee production. D) Brazil has absolute advantage in coffee production.
To analyze aggregate productivity, economists typically assume ________
A) that the hours each person works varies with the wage rate B) that all of the capital and labor in the economy are fully utilized C) that output can increase only if inputs have become more productive D) all of the above E) none of the above
In the AD/AS diagram, long-run economic growth due to productivity increases over time will be represented by a gradual shift to the
a. left of aggregate supply. b. right of aggregate supply. c. left of aggregate demand. d. right of aggregate demand.
For a monopolist,
a. average revenue is always greater than the price of the good. b. marginal revenue is always less than the price of the good. c. marginal cost is always greater than average total cost. d. marginal revenue equals marginal cost at the point where total revenue is maximized.