Economics: The Basics 1st Edition by Mike Mandel

Exercise 8

Say whether each of the following statements, is true or false.
a) Government spending is funded only through taxation.
b) An increase in government spending will generally reduce the quantity of labor demanded in the short run.
c) Government buying helicopters from overseas boosts the U.S. economy.
d) If the job multiplier is 2, then each additional worker the government hires will create another job in the private sector.
e) The property tax collects the most revenue of any tax.
f) Americans are paying a record share of their income in federal income taxes.
g) An increase in the marginal tax rate would tend to discourage working extra hours.
h) Increased government borrowing has a stimulative effect on the economy in the short run, all other things being equal.