Which statement(s) is/are TRUE? I. Increased use of technology has enabled companies to use fewer workers, contributing to jobless recoveries.
II) The use of fiscal and monetary policy to address a jobless recovery will not lead to spending by consumers and to firms being crowded out by government spending.
III) Increasing taxes to reduce the national debt is an appropriate policy to address a jobless recovery.

Question

Quizplus · Accepted Answer

Statement I is true as increased use of technology has resulted in automation of many jobs, leading to job losses. Statement II is false as fiscal and monetary policies can lead to spending by consumers and firms may not necessarily be crowded out by government spending. Statement III is false as increasing taxes can reduce consumer and investor spending, leading to a further slowdown in economic activity.

Which Statement(s) Is/are TRUE? I