When the economy grows due to sound investment policies, ________ increase because real GDP ________.

Select one:

a.structural deficits; decreases

b.tax revenues; increases

c.natural unemployment rate; increases

d.tax revenues; decreases

e.recognition lags; increases

If prices are fixed, an increase in aggregate expenditures results in an increase in equilibrium GDP that

Select one:

a.is greater than the change in aggregate expenditure.

b.has no necessary relationship to the size of the change in aggregate expenditure.

c.is less than the change in aggregate expenditure.

d.is equal to the change in aggregate expenditure.

e.none of the above are true.

The crowding-out effect implies

Select one:

a.government spending crowding-out private spending.

b.private saving crowding-out government saving.

c.private investment crowding-out public saving.

d.government investment crowding-out private sector investment.

e.public savings reducing private savings.