The Size of the Crowding-Out Effect, Affecting the Size of the Government

question 51

Essay

The size of the crowding-out effect, affecting the size of the government spending multiplier, depends on two things. Explain what those are.

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Definitions:

Strict Dualism

Position 1 in Perry’s model that implies a rigid adherence to authoritarian views and a childlike division between in-group and out-group. Individuals in this stage never think to question their belief that authority embodies rightness.

Multiplicity

The quality of being numerous or having many different elements.

Relativism

is the philosophical concept that views knowledge, truth, and morality as varying depending on culture, society, or historical context.

Relativistic

Pertaining to the concept that points of view have no absolute truth or validity, having only relative, subjective value according to differences in perception and consideration.