Crowding Out Occurs When

question 26

Multiple Choice

Crowding out occurs when:

• A) higher government spending leads to less private spending.
• B) personal consumption decreases due to an increase in savings.
• C) overall output is crowded out by lower government spending.
• D) increases in government spending lead to increases in taxes.

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Definitions:

Arbitrator

A neutral third party selected to resolve a dispute between two or more parties in a binding manner outside of court.

Labour Disputes

Conflicts between employers and employees, typically over matters such as wages, working conditions, and union representation.

Mediator

A third party in an employment dispute who meets with one party and then the other to suggest compromise solutions or to recommend concessions from each side that will lead to an agreement.

Collective Agreements

Legal contracts between employers and a group of employees, often represented by a union, that outline the terms of employment.