Recent studies on the effectiveness of fiscal policy tend to suggest that the government spending multiplier is less than 1.0
a. True
b. False
Indicate whether the statement is true or false
True
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Explain and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run
What will be an ideal response?
If the economy is initially at equilibrium and an unexpected decline in aggregate demand takes place, in the short run aggregate output will
A) fall in the new classical view, but not in the new Keynesian view. B) fall in the new Keynesian view, but not in the new classical view. C) fall in both the new Keynesian and new classical views. D) remain at full employment in both the new classical and new Keynesian views.
Marginal factor cost is defined as the amount that an additional unit of the variable input adds to ____
a. marginal cost b. variable cost c. marginal rate of technical substitution d. total cost e. none of the above
Competing-interest legislation is characterized by
a. concentrated costs and concentrated benefits b. concentrated benefits and widespread costs c. widespread benefits and widespread costs d. widespread benefits and concentrated costs e. zero costs