To Offset the Indirect Crowding-Out Effects, a Government Engaging in Expansionary

question 265

Multiple Choice

To offset the indirect crowding-out effects, a government engaging in expansionary policy aimed at eliminating a recessionary gap could

• A) increase spending less than the simplest Keynesian model would predict.
• B) increase spending more than the simplest Keynesian model would predict.
• C) reduce taxes rather than increase government spending.
• D) both reduce taxes and reduce spending to be able to achieve full employment.

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Definitions:

Coping

The cognitive and behavioral strategies employed by individuals to manage stress, challenges, or adversity.

Emotion-focused

A coping strategy that involves managing or reducing the emotional distress caused by a situation.

Volunteers

Individuals who offer services willingly without receiving payment, often to support communities or organizations.

Continuity Theory

Theory of aging, described by Atchley, that holds that in order to age successfully people must maintain a balance of continuity and change in both the internal and external structures of their lives.