Which of the following attributes of the recession of 2008-2009 is most supportive of the Keynesian view that the crowding-out effect will be minimal during a severe recession?
a. the immediate increase in output and employment generated by the budget deficits of 2008-2009
b. the decline in the general level of prices during 2009
c. short-term interest rates falling to near zero, despite growing budget deficits during 2008-2009
d. short-term interest rates falling to near zero, as the budget deficit declined during 2008-2009
C
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Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch. 
What is the equilibrium outcome of this game?
A. Player 1 and Player 2 both choose Up. B. Player 1 and Player 2 both choose Down. C. Player 1 chooses Down and Player 2 chooses Up. D. Player 1 chooses Up and Player 2 chooses Down.
Which of the following trends has been occurring with mandatory spending?
a. People are receiving fewer benefits per person. b. The number of undocumented immigrants receiving benefits has ballooned dramatically. c. The number of workers is decreasing compared to the number of people getting benefits. d. People are becoming more reluctant to apply for benefits.
If Elizabeth can make 3 pies or bake 6 cakes per hour and Benjamin can make 2 pies or bake 8 cakes per hour, _____.
(A) Benjamin has the comparative advantage in making pies. (B) Elizabeth has the comparative advantage in baking cakes. (C) Benjamin should specialize in making pies. (D) Elizabeth should specialize in making pies.
The full-employment level of real GDP is the level which can be produced with:
A. given technology and productive resources. B. frictional and structural unemployment equal to zero. C. cyclical unemployment greater than zero. D. future technology.