Suppose that the economy is currently at full employment. When the country ends its war in Afghanistan and reduces the military spending needed to support it, crowding in will take the form of:
A) an increase in investment spending.
B) an increase in consumption spending.
C) A and B are both correct.
D) neither A nor B is correct.
Correct Answer:
Verified
Q84: What happens to the equilibrium wage rate
Q85: Suppose that the U.S. has an open
Q86: Another term for full- employment output is:
A)
Q87: According to classical economists, which of the
Q88: In a production function that is graphed
Q90: An increase in the productivity of workers
Q91: In a closed economy, crowding out occurs
Q92: Recall Application 3, "Can Labor Market Policies
Q93: Real business cycle theory:
A) emphasizes only changes
Q94: In a production function that is graphed
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents