In the United States during the 1930s, politicians
A) deliberately relied on government spending and taxation even though they knew the depression would continue.
B) knew that the depression would eventually subside because of automatic stabilizers.
C) did not believe in using government spending and taxation because they feared the consequences of budget deficits.
D) relied on government spending and taxation to pull the economy out of the depression.
C
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In Figure 11.3, the change in investment spending is represented as the distance between points
A) C0 and C1. B) a1 and y1. C) a0 and a1. D) y0 and y1.
An external benefit is a benefit that ________
A) is enjoyed by someone other than the buyer of a good B) always equals external cost C) experiences increasing marginal returns D) is greatest at the equilibrium point