Will increases in federal spending always increase real GDP and employment in the short run? Are there any circumstances in which the federal government would not want to increase its spending even if it results in higher uotput and lower unemployment in the short
What will be an ideal response?
Answer: Yes if the economy is producing at less than its potential output and has some cyclical unemployment
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If the price index last year was 100 and today it is 167, what is the inflation rate over this period?
A) 33 percent B) -67 percent C) -6.7 percent D) 167 percent E) 67 percent
Suppose that the price elasticity of demand for museum tickets is equal to –1.8 . If the price of a museum ticket rises by 30 percent, what will happen to quantity demanded?
What will be an ideal response?
Because of scarcity, we attempt to utilize our resources as efficiently as possible
a. True b. False Indicate whether the statement is true or false
Indicate what might be done to restrain the tendency of the democratic process to generate budget deficits?