According to the Text,the Consensus About the Effects of the 2009

question 234

Multiple Choice

According to the text,the consensus about the effects of the 2009 fiscal stimulus was that:

• A) a lot of the tax cuts did not turn into consumer spending.
• B) most state governments did not benefit from the stimulus program.
• C) the spending on infrastructure created many new permanent jobs.
• D) the massive government spending programs almost completely crowded out private spending.

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Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Benefit From Trade

The advantage gained by countries, entities, or individuals from engaging in international trade, often including access to a wider variety of goods and services.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors using the same amount of resources.

Comparative Advantage

A principle that states that a party should specialize in producing goods for which it has the lowest opportunity cost, leading to increased economic efficiency.