The benefits principle states that the users of a service should pay for that service.

In preparing their estimates of the stimulus package's effect on GDP, Obama administration economists estimated a government purchases multiplier of 1.57

Economist Robert Barro argues that ________, the government purchases multiplier would be lower than the administration's estimate, and economists Lawrence Christiano, Martin Eichenbaum, and Sergio Rebelo argued that ________, the multiplier would be higher than the administration's estimate. A) during wartime; when short-term interest rates are near zero B) during a recession; when the inflation rate is relatively low C) when the unemployment rate is high; when the value of the dollar is depreciating against foreign currencies D) when the federal budget is in surplus; when government transfer payments are declining

The invisible hand of the marketplace acts to allocate resources

a. efficiently but does not necessarily ensure that resources are allocated fairly. b. both fairly and efficiently. c. fairly but does not necessarily ensure that resources are allocated efficiently. d. neither fairly nor efficiently.