Which of the following is likely to lead to economic growth in the long term?

A) new highways to serve new neighborhoods and business parks

B) interest payment on debt.

C) spending on printing new dollar bills.

D) new laws toward a more equitable or fair distribution of income.

If an economy moves into an inflationary period, causing that country to produce more than potential GDP, then

A) tax revenue and government spending will be higher because of automatic stabilizers.

B) tax revenue and government spending will be lower because of automatic stabilizers.

C) automatic stabilizers will cause tax revenue to increase and government spending to decrease.

D) automatic stabilizers will cause tax revenue to decrease and government spending to increase.