In the Long Run,most Economists Agree That a Permanent Increase

question 268

Multiple Choice

In the long run,most economists agree that a permanent increase in government spending leads to ________ crowding out of private spending.

• A)no
• B)partial
• C)complete
• D)more than complete

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Definitions:

Producers

Entities that create, manufacture, or supply goods and services.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, intended to protect consumers by preventing prices from reaching excessively high levels.

Supply Curve

A graph that shows the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Demand Curve

A representation that shows the quantity of a particular good or service that consumers are willing and able to purchase at various prices.