Government spending in the one-period model acts to
A) make consumers less productive.
B) shift out the production possibilities frontier.
C) decrease hours of work.
D) reduce consumption.
E) reduce investment.
Correct Answer:
Verified
Q16: The first fundamental theorem of welfare economics
Q17: The government spending multiplier is
A)the ratio of
Q18: Much of the writings of Adam Smith
Q19: The concept of Pareto optimality is a
A)useful
Q20: In an economic model, an endogenous variable
Q22: Changes in total factor productivity are plausible
Q23: In an economic model, government spending is
Q24: The marginal rate of transformation is
A)is equal
Q25: A Pareto optimum
A)is the slope of the
Q26: In the production function, output is given
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