Which of the following is a potential drawback of an expansion of government spending projects during a recession?
A) Spending projects are easily reversed once the economy has recovered.
B) Government spending projects are not included in the calculation of GDP.
C) Those benefiting from spending projects will lobby for a continuation of these projects long after the economy has recovered.
D) Government spending projects will not encourage rent-seeking activity.
Correct Answer:
Verified
Q33: The new classical model states that a
A)
Q40: Which of the following most clearly states
Q67: During the 1980s, the top marginal tax
Q68: The modern synthesis view of fiscal policy
Q113: According to the Keynesian view, government spending
Q145: What is the "crowding-out" effect? How does
Q156: Susan sells life insurance and is considering
Q158: "Expansionary fiscal policy will tend to substantially
Q159: Other things constant,a reduction in marginal tax
Q165: In 2007,the debt-to-income ratio of American households
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents