An Increase in Government Spending Can Reduce Real GDP Growth

question 256

Multiple Choice

An increase in government spending can reduce real GDP growth if:

• A) most government spending is used to reduce the national debt.
• B) decreases in private spending more than offset the increase in government spending.
• C) taxes do not increase enough to finance the increase in government spending.
• D) the credibility of the government is too high.

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Definitions:

Industrial Workers of the World

An international labor union founded in 1905, known for its radical approach to worker's rights and socialism.

Primary Goals

The main or fundamental objectives that an individual, group, or organization aims to achieve.

President Roosevelt

Refers usually to Franklin D. Roosevelt, the 32nd President of the United States, known for his New Deal policies aimed at recovering from the Great Depression.

Labor Disputes

Conflicts between employees (often represented by unions) and their employers regarding working conditions, wages, and other employment issues.