Economists call the idea that increases in government spending cause decreases in private investment

a. crowding out
b. locking in
c. the liquidity trap
d. automatic stabilization
e. the Phillips trade off

A

Economics

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All of the following statements are examples of normative economic analysis except

A) as the demand for emergency room nurses increases, more students are choosing to enroll in nursing school. B) to provide better care, doctors should be required to limit the number of patients they see each day. C) people should be able to choose whether they want to purchase health insurance. D) prescription drugs are too expensive and the government needs to regulate prices in the pharmaceutical industry.

Economics

Suppose the market demand curve for tacos can be expressed as QD = 120 - 3P - Pb, where QD is the quantity of tacos demanded, P is the price of a taco, and Pb is the price of a burrito. What is the relationship between burritos and tacos, from the point of view of consumers?

A) They are independent. B) They are complements. C) They are substitutes. D) Not enough information to answer the question.

Economics