Author Question: The major component of federal government consumption is spending on ________. A) Social ... (Read 68 times)

Brittanyd9008 · **on:** Jun 30, 2018

The major component of federal government consumption is spending on ________.

A) Social Security, Medicare and Medicaid
B) foreign aid
C) capital goods, e.g. highways and schools
D) national defense

Question 2

In 2005 hurricane Katrina devastated large portions of the Gulf Coast economy. Many refineries went offline disrupting oil refining and distribution. What do you think was a likely result?

A) the restricted supply constituted a cost push shock that would have shifted the long run AS curve to the right
B) the restricted supply constituted a cost push shock that would have shifted the short run AS curve to the left
C) the restricted supply constituted a cost push shock that would have meant an upward movement along the Phillips curve
D) all of the above
E) none of the above