The Crowding-Out Effect Is

question 19

Multiple Choice

The crowding-out effect is

• A) due to the upward slope of the SRAS when the economy is operating to the right of the LRAS curve.
• B) due to the government being more powerful in the markets when there is an increase in government spending.
• C) a situation in which expansionary fiscal policy leads to a decrease in planned spending in the private sector.
• D) only relevant when an inflationary gap is present.

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Definitions:

Diploid Parent Cell

A cell that contains two complete sets of chromosomes, one from each parent, and is the precursor to gametes in sexual reproduction.

Double Division

A term often related to meiosis, the process by which cells divide to produce gametes (sex cells) involving two rounds of nuclear division resulting in four genetically distinct cells.

Trophoblast

A layer of cells forming the outer shell of a blastocyst, providing nutrients to the embryo and developing into a large part of the placenta.

Extraembryonic Membranes

Membranes that develop outside of the embryo in amniotes, providing protection, nutrition, gas exchange, and waste elimination.