What is the most appropriate test to evaluate whether a government-spending program will improve living standards and lead to higher income levels?
A) The total number of jobs created by the program.
B) The value of the output generated by the government-spending program compared to its opportunity cost.
C) The reduction in the rate of unemployment as the result of the spending on the program.
D) The taxes necessary to finance the program compared to the revenues generated by the additional employment created by the program.
Correct Answer:
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Q1: According to the new classical theory, a
Q2: New classical economists believe that an increase
Q4: The new classical model implies that a
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Q5: Which of the following about fiscal policy
Q6: According to new classical economists, the most
Q7: It will be difficult to institute fiscal
Q8: Which of the following most accurately indicates
Q9: When the government levies taxes to subsidize
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Q11: Public choice analysis indicates that it will
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