The "Crowding-Out" Critique Is Based on the Idea That

question 105

Multiple Choice

The "crowding-out" critique is based on the idea that

• A) consumption increases when government spending increases.
• B) government spending may be a substitute for private spending.
• C) time lags crowd out the effects of fiscal policy.
• D) supply-side fiscal policy does not increase total output.
• E) increases in government spending and decreases in taxes are offset by increases in savings.

---

Definitions:

Annual Growth

The increase in value or size of something over a one-year period, usually expressed as a percentage.

Labor Force

The total number of people employed and unemployed, who are actively seeking employment.

Diversity Immigration

Policies or programs designed to encourage immigration from a wide range of cultural, racial, or ethnic backgrounds.