Economists Who Believe in Complete Crowding Out Would Argue That

Multiple Choice

Economists who believe in complete crowding out would argue that

A) jobs created or saved because of increased government spending will be matched by an equal number of jobs created by an increase in private sector spending.
B) jobs created or saved because of increased government spending will be completely offset by jobs destroyed by a decline in private sector spending.
C) government policies intended to stimulate aggregate demand will be completely ineffective.
D) government policies intended to stimulate aggregate demand will tend to be effective.
E) a and c