Budget Projections for 2014-2020 Indicate Both Higher Levels of Government

question 63

Multiple Choice

Budget projections for 2014-2020 indicate both higher levels of government spending and large budget deficits. Non-Keynesian economists argue that this will lead to

• A)lower taxes, which will reduce aggregate supply and retard long-term growth.
• B)growth rates above the historic average for the decade.
• C)an increase in aggregate demand and real output.
• D)higher interest rates, higher taxes, and sluggish future growth.

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Definitions:

Public Policy

Principles and standards considered by the government to be of benefit to the community and used as a guide for legislative action.

Noncompetition Clauses

Provisions in employment contracts that prevent employees from entering into competition with their employer for a certain period after leaving the company.

Public Policy

Principles and standards accepted by the majority of citizens and used by legislators, judges, and public officials to guide their actions and decisions.

Illegal Contract

An agreement between parties that is prohibited by law or public policy, rendering it unenforceable.