The Macroeconomic Case for Government Spending Is Strongest When

question 8

Multiple Choice

The macroeconomic case for government spending is strongest when:

• A) economic performance is sluggish.
• B) national infrastructure is significantly depreciated.
• C) the government faces some immediate emergency.
• D) private spending is strong.

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Definitions:

Effort Justification

A phenomenon whereby individuals rationalize the effort and resources they put into achieving a goal by increasing their appreciation or valuation of the goal, especially when the effort was substantial.

Belief Perseverance

The psychological phenomenon where individuals cling to their initial views or explanations despite the confrontation with new, contradictory information.

Social Psychology

The examination of individuals' thoughts, emotions, and actions within societal settings through scientific methods.

Belief Perseverance

The tendency for people to hold on to their beliefs even in the face of contradictory evidence.