Suppose That Increases in Government Expenditures and Large Budget Deficits

question 78

Multiple Choice

Suppose that increases in government expenditures and large budget deficits are projected for the next decade.  If strong growth is observed during this decade, this would be most consistent with

• A) the Keynesian view.
• B) the supply-side view.
• C) the crowding-out effect.
• D) the new classical theory.

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Definitions:

Food Availability

The state in which food is present, accessible, and sufficient to meet the needs of the population.

Circadian Rhythms

The innate, physiological mechanisms that control the cycle of sleeping and waking, occurring approximately every 24 hours.

Neural Activity

The electrical and chemical processes that occur within neurons, enabling them to communicate with each other.

Moon Phase

The appearance of the illuminated portion of the moon as seen from Earth, which changes in a cyclical pattern.