Multiple Choice
Assume that if there were no crowding out, an increase in government spending would increase GDP by $100 billion. On the other hand, if there had been full crowding out, then GDP would have
A) increased by more than $100 billion.
B) increased by less than $100 billion.
C) increased by $100 billion.
D) not increased.
Correct Answer:
Verified
Correct Answer:
Verified
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