Assume That If There Were No Crowding Out, an Increase

question 104

Multiple Choice

Assume that if there were no crowding out, an increase in government spending would increase GDP by $100 billion. On the other hand, if there had been full crowding out, then GDP would have

• A) increased by more than $100 billion.
• B) increased by less than $100 billion.
• C) increased by $100 billion.
• D) not increased.

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Definitions:

Static Reasoning

A characteristic of preoperational thought in which a young child thinks that nothing changes. Whatever is now has always been and always will be.

Concrete Operational

A stage of cognitive development in children, proposed by Piaget, occurring roughly between the ages of 7 and 12, during which children gain a better understanding of mental operations and physical concepts.

Middle Childhood

The developmental stage between early childhood and adolescence, typically from ages 6 to 12, marked by increased cognitive, social, and emotional development.

Formal Operational

A stage of cognitive development proposed by Jean Piaget, occurring from adolescence onwards, when individuals develop the ability to think abstractly, logically, and systematically.