Which Statement Is True

question 182

Multiple Choice

Which statement is true?

• A)When there is a recessionary gap,we are spending too much and taxes should be raised.
• B)When there is a recessionary gap we are spending too little and taxes should be raised.
• C)When there is a recessionary gap,we are spending too much and taxes should be lowered.
• D)When there is a recessionary gap we are spending too little and taxes should be lowered.

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Definitions:

Factor Endowments

Refers to the quantities of productive resources a country has available, including labor, land, and capital.

Trade Advantage

The benefit or edge a country, region, or business has in producing a specific good or service more efficiently than competitors.

Labor-Abundant

Describes an economy or sector that has a high availability of labor relative to capital.

Land-Abundant

A description of a country or region that has a large amount of land available for agriculture or development relative to other inputs.