If you were a supply-side economist, you would argue that high levels of government spending
a. stimulate aggregate demand that in turn creates the incentive for increased aggregate supply
b. add to aggregate supply because they bring more resources into being
c. is limited by the taxes supplied to it by those paying the tax
d. crowd out private sector investment which negatively affects GDP growth
e. cause private sector investment to decrease because corporate taxes must be raised to finance the government spending
D
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Endogenous variables tend to be less volatile than exogenous ones
Indicate whether the statement is true or false
Common property often results in
A. exclusive rights of ownership. B. more efficient production of goods. C. a negative externality. D. a social benefit.
Which of the following would not be an external cost associated with gambling?
A. The increase in homelessness associated with casinos B. The increase in crime near casinos C. The cost of security at casinos D. The effects on the gamblers' family
Refer to Table 3-3. The table contains information about the sorghum market. Use the table to answer the following questions
a. What are the equilibrium price and quantity of sorghum? b. Suppose the prevailing price is $6 per bushel. Is there a shortage or a surplus in the market? c. What is the quantity of the shortage or surplus? d. How many bushels will be sold if the market price is $6 per bushel? e. If the market price is $6 per bushel, what must happen to restore equilibrium in the market? f. At what price will suppliers be able to sell 36,000 bushels of sorghum? g. Suppose the market price is $14 per bushel. Is there a shortage or a surplus in the market? h. What is the quantity of the shortage or surplus? i. How many bushels will be sold if the market price is $14 per bushel? j. If the market price is $14 per bushel, what must happen to restore equilibrium in the market?