The classical model
a. is another name for the short-run macro model
b. was developed to explain the long period of poor economic performance during the Great Depression
c. is an attempt to explain why the economy tends to perform rather well over long periods of time
d. is believed by most economists to be a better explanatory model for short-term, rather than long-term, economic performance
e. was not really accepted as a legitimate economic theory until the 1950s
C
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A decrease in government spending would
a. lower the interest rate, which is unlikely to influence private investment spending b. raise the interest rate and decrease private investment spending c. lower the interest rate and decrease private investment spending d. raise the interest rate and increase private investment spending e. lower the interest rate and increase private investment spending
Access the document prepared by the U.S. Census Bureau, Pollution Abatement Costs and Expenditures: 2005, available online at www.census.gov/prod/2008pubs/ma200-05.pdf.Examine the state-level data for total capital and operating abatement costs. Analyze the differences amongany subset of states, and offer a hypothesis as to why these differences might exist.
What will be an ideal response?