The Ricardian equivalence theorem suggests that an increase in the government budget deficit created by a tax cut will
A) decrease real Gross Domestic Product (GDP) in the short run, but increase it in the long run.
B) decrease real Gross Domestic Product (GDP) in both the short and long run.
C) increase real Gross Domestic Product (GDP) in both the short and long run.
D) have no effect on aggregate demand.
D
Economics
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What is the meaning of the statement "correlation does not mean causation"?
What will be an ideal response?
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In the 19th century, the federal government:
a. allocated funds to help build steamboats. b. passed laws requiring steamboat boiler inspections. c. required steamboat captains to undergo training in order to receive an operating license. d. regulated the fees that steamboats could charge for carrying freight. e. All of the above.
Economics