During the recession of 2007-2009 in the United States, ________ relative to potential GDP
A) business fixed investment spending rose and net export spending declined
B) federal government purchases rose and changes in business inventories declined
C) consumption spending rose and residential construction spending declined
D) net export spending rose and consumption spending declined
D
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In the neoclassical growth model, if two countries are exactly the same but one has a lower permanent budget deficit, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and higher output growth in the steady state. b. the same output and capital-to-labor ratio, but higher output growth in the steady state. c. higher output, the same capital-to-labor ratio, and the same output growth in the steady state. d. higher output, a higher capital-to-labor ratio, and the same output growth in the steady state.
Social Security benefits, welfare payments, and farm support payments are examples of:
A. public interest payments. B. investment spending. C. consumption spending. D. transfer payments.