Economist A believes that the expansionary fiscal policy --- in the form of increased government spending --- should be implemented to remove the economy from the recessionary gap it is currently in. This economist probably believes that

A) crowding out will not present much of a problem.
B) crowding out will be a big problem.
C) crowding out is irrelevant to the degree of effectiveness of fiscal policy.
D) zero crowding out is unlikely.
E) c and d


A

Economics

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There are two types of costs associated with production: ____ costs that require monetary payments, and ____ costs that do not

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Matt and Chloe each produce two goods. According to the principle of comparative advantage, the total output produced by these individuals will be greatest

A. if each good is produced by the individual who has the higher absolute cost of producing that good. B. if Matt produces both goods and Chloe produces nothing. C. if each good is produced by the individual who has the lower opportunity cost of producing that good. D. if Chloe produces both goods and Matt produces nothing.

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