Solved

Which of the Following Is an Example of Crowding-Out

Question 130

Multiple Choice

Which of the following is an example of crowding-out?


A) The government invests in education, shifting the long-run aggregate supply curve to the right.
B) The government lowers taxes, but spending does not increase.
C) The government buys elementary students new school uniforms, which decreases the amount of private spending on school uniforms.
D) The government conducts countercyclical policy at the wrong time.
E) The government spends more than it collects in taxes.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents