Assume That If There Was No Crowding-Out, an Increase in Government

question 35

Multiple Choice

Assume that if there was no crowding-out, an increase in government spending would increase GDP by $100 billion. If there had been partial crowding-out, however, then GDP would have:

• A) Increased by more than $100 billion
• B) Increased by less than $100 billion
• C) Increased by $100 billion
• D) Not increased

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Definitions:

Affect

A term used to describe the experience of feeling or emotion.

Aversive Racism

Simultaneously holding egalitarian values and negative feelings toward people of other races

Racial Equality

The principle asserting that all races should be treated equally and have the same opportunities, rights, and privileges.

Prejudice

A preconceived opinion that is not based on reason or actual experience, often leading to unfair treatment of people.