According to the Application, Hazlitt's argument that the broken window is NOT good for society
A) works in both the Keynesian and classical worlds regardless of where the economy is operating relative to full employment.
B) works in the Keynesian world when the economy is operating below full employment.
C) works in the classical world when the economy is operating at full employment.
D) never works in the Keynesian or classical worlds regardless of where the economy is operating relative to full employment.
C
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According to new growth theorists, more technological improvements can be brought about by
A) the government taking a more active role in regulating industries. B) government policies that lead to increases in human capital. C) tougher immigration laws. D) a government policy that encourages increased consumption.
What is a major disadvantage in the use of import barriers to make domestic goods cheaper?
(A) The line between imported and domestic goods becomes harder and harder to draw. (B) Domestic manufacturers may lose the economic incentive to produce their cars less expensively. (C) Import manufacturers stop trying to send their goods to the country that has import barriers. (D) Domestic manufacturers create more jobs