If a State Government Makes a Formal Request That the President

question 63

Multiple Choice

If a state government makes a formal request that the president deploy federal troops,the president

• A)is constitutionally required to send exactly as many federal troops as the state government has requested.
• B)is constitutionally required to send some federal troops but can choose exactly how many will be sent.
• C)can only refuse to send federal troops if a majority of Congress votes to reject the state government's request.
• D)is not constitutionally obligated to deploy national troops.

Understand the mechanisms and effects of fiscal policies on aggregate demand and GDP.

Identify the role of government expenditures, taxes, and net taxes in shaping economic outcomes.

Comprehend the principles behind the spending multiplier and its impact on the economy.

Distinguish between expansionary and contractionary fiscal policies and their uses in addressing economic gaps.

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Definitions:

Implicit Cost

Costs that represent the loss of potential gain from using assets in an alternative option rather than in their current use.

Implicit Costs

The opportunity costs of resources that are owned by the firm and used in production, not involving direct payment of money but affecting the firm's profitability.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.

Accounting Profits

The net earnings of a company as calculated by subtracting total expenses from gross revenue, according to accepted accounting principles.