In the long run, most economists agree that a permanent increase in government spending leads to
A) a decrease in private spending by less than the amount that government spending increased.
B) a decrease in private spending by the same amount that government spending increased.
C) no decrease in private spending.
D) a decrease in private spending by more than the amount that government spending increased.
B
You might also like to view...
Refer to the scenario above. A basket of goods worth $1 in the U.S. has a price of ________ in Country 2
A) 320 ritz B) 50 ritz C) 12.5 ritz D) 25 ritz
A tax on a good that is imposed when it is imported is called
A) an import quota. B) a VER. C) a tariff. D) a sanction. E) a border tax.
When the price of a product increases, the marginal revenue product curve in a perfectly competitive market
A) does not change. B) becomes flatter. C) shifts to the right. D) shifts to the left.
Figure 9.2 shows the cost structure of a firm in a perfectly competitive market. Suppose that market price falls to $6. If the firm produces at an output level that causes it to suffer an economic loss of $120, its average total cost (X) is:
A. $8. B. $7.50. C. $6.50. D. $4.