Economists Who Believe in Complete Crowding Out Would Argue That

question 29

Multiple Choice

Economists who believe in complete crowding out would argue that

• A) jobs created or saved because of increased government spending will be matched by an equal number of jobs created by an increase in private sector spending.
• B) jobs created or saved because of increased government spending will be completely offset by jobs destroyed by a decline in private sector spending.
• C) government policies intended to stimulate aggregate demand will be completely ineffective.
• D) government policies intended to stimulate aggregate demand will tend to be effective.
• E) a and c

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Definitions:

Checking Accounts

These are types of bank accounts that allow for both deposits and withdrawals, commonly used for everyday transactions.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the mean.

Daily Temperatures

Data points representing the temperature measurements taken each day over a given period.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true.