« previous next »

Author Question: When the economy is producing its potential output, an increase in government spending must ... (Read 148 times)

DyllonKazuo

  • Hero Member
  • *****
  • Posts: 565
on: Jun 30, 2018
When the economy is producing its potential output, an increase in government spending must necessarily reduce some component of private spending. This phenomenon is called
 
  A) the multiplier effect. B) entitlement spending.
  C) fiscal policy. D) crowding out.

Question 2

In September 2008, the MONTHLY rate of inflation in Zimbabwe approached 489 BILLION percent. An inflation rate such as this would
 
  A) be too high to calculate using the CPI. B) decrease the natural rate of unemployment.
  C) seriously disrupt normal commerce. D) all of the above.
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
Buy Test-Bank


vickyvicksss

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Changes that occur during an action potential. Changes that occur during an action potential.
An orb weaver producing silk from its spinnerets An orb weaver producing silk from its spinnerets
AC ripple at the output terminal of the battery is more accurate than testing at the battery due ... AC ripple at the output terminal of the battery is more accurate than testing at the battery due ...
North America and the Global Economy North America and the Global Economy
Links to the World Economy Links to the World Economy
PV cells have potential for domestic and commercial use PV cells have potential for domestic and commercial use
Video: Coronary Heart Disease

For a complete list of videos, visit our video library