Multiple Choice
When government spending flows to areas where resources are already fully employed,
A) the additional spending will stimulate strong growth in those areas.
B) aggregate demand will place downward pressure on the general level of prices.
C) the coordination problem accompanying the composition of aggregate demand is likely to improve.
D) the coordination problem accompanying the composition of aggregate demand is likely to worsen.
Correct Answer:

Verified
Correct Answer:
Verified
Q88: Which one of the following is an
Q89: The crowding-out effect stresses that increased government
Q90: Other things being constant, countries with higher
Q91: New classical economists stress that an increase
Q92: Which of the following contributes to the
Q94: Which of the following most clearly states
Q95: Use the figure below to answer the
Q96: If the crowding-out effect is strong, how
Q97: If decreased government borrowing drives down real
Q98: Use the figure below to answer the