To compensate for the possibility of indirect crowding out, a government engaging in expansionary policy aimed at eliminating a recessionary gap could
A) reduce taxes rather than increase government spending.
B) increase spending less than the simplest Keynesian model would predict.
C) both reduce taxes and reduce spending to be able to achieve full employment.
D) increase spending more than the simplest Keynesian model would predict.
Question 2
The two ways in which deficit spending can impose a burden on future generations are
A) by requiring future generations to face lower government spending and to utilize a smaller stock of human capital.
B) by requiring future generations to face higher taxes and to work with a lower accumulated stock of capital goods.
C) by substituting private goods for public goods and thereby benefiting only large businesses.
D) by substituting private goods for public goods and thereby shifting resources to foreign residents.
This modified model of Easton’s systems theory puts government decision makers as the source of pol
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th
Indirect-Acting Cholinergic Agnostic Agents
Government in America: People, Politics, and Policy, AP
American Government: Roots and Reform, AP* Edition, 12th Edition