Which of the following statements is true of government spending?
a. An increase in government spending raises the equilibrium level of income by a multiple of the original spending increase.
b. Government spending is a part of monetary policy, not fiscal policy.
c. A decline in government spending brings about an expansion in the economy.
d. An increase in government spending increases the recessionary gap in the economy.
e. An increase in government spending shifts the aggregate demand curve downward by a fraction of the rise in government spending.
a
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Public goods are I. nonexcludable. II. nonrival
A) I only B) II only C) both I and II D) neither I nor II
With regard to the subject matter of American economic history, Hughes and Cain (2011) suggest that
(a) the presence of the highest living standards known in world history supports the claim that American history is largely a "success story." (b) the American economy is an economy with only successes but no failures. (c) U.S. history provides a fragmented record of problem-solving and problem-producing solutions to the challenges of economic development. (d) there is no link between today's economy and the economy of yesteryear.