OECD data for 1960 through 1999 indicates that a 10 percent increase in government expenditures as a percent of GDP
A) increases economic growth by about 5 percent.
B) increases economic growth by about 2 percent.
C) has no effect on economic growth.
D) reduces economic growth by about 1 percent.

Question

Quizplus · Accepted Answer

OECD data from 1960 to 1999 suggests that a 10 percent increase in government expenditures as a percent of GDP is associated with a reduction in economic growth by about 1 percent.

OECD Data for 1960 Through 1999 Indicates That a 10