Many economists agree that this difference is due to all of the following reasons except:
A. Since the 1950s, the economy has become more service oriented and less dependent on the production of goods.
B. Since the 1950s, the federal government has stabilized the economy by using active fiscal and monetary policies
C. Since the 1950s, people have become more rational and control their spending behavior countercyclically.
D. Since the 1950s, the unemployment insurance program and other government transfer programs have aided the economy.
Answer: C. Since the 1950s, people have become more rational and control their spending behavior countercyclically.
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Crowding out is the tendency for increased government deficits to:
A. increase consumption spending. B. increase investment spending. C. reduce investment spending. D. reduce consumption spending.
Which of the following is likely to happen if consumption in an economy falls?
A) Asset prices rise. B) Mortgage defaults fall. C) Labor supply falls. D) Layoffs rise.
Prince Henry the Navigator was one of the leading explorers from _____
a. England b. France c. Holland d. Portugal e. Spain
When faced with an economic loss, a competitive firm will exit the industry in the long run
a. True b. False Indicate whether the statement is true or false