When Economists Make Positive Statements,they Are

question 47

Multiple Choice

When economists make positive statements,they are

• A)speaking as scientists.
• B)speaking as policy advisers.
• C)making claims about how the world should be.
• D)revealing that they are very conservative in their views of how the world works.

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Definitions:

Crowding Out

An economic situation where private investment decreases due to an increase in government borrowing and spending.

Household Spending

This refers to the total amount of money spent by households in an economy on goods and services over a particular period of time.

Net Exports

The value of a country's total exports minus its total imports, a crucial component of the gross domestic product.

Crowding Out

An economic phenomenon where increased government spending reduces private sector investment or consumption due to higher interest rates.