In the Long Run,most Economists Agree That a Permanent Increase

question 268

Multiple Choice

In the long run,most economists agree that a permanent increase in government spending leads to ________ crowding out of private spending.

• A)no
• B)partial
• C)complete
• D)more than complete

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Definitions:

Potential Output

Potential output is the maximum amount of goods and services an economy can produce when it fully uses its available resources.

Köhler Effect

A phenomenon in social psychology where less capable members of a group are motivated to increase their effort on a task to match the performance levels of more capable members.

Productive Individuals

People who are consistently able to achieve high output within the expected timeframes, contributing significantly to their teams or projects.

Dominant Responses

The most common or likely reactions individuals exhibit in a given situation, often influenced by past experiences, instincts, or social norms.