1. A rise in government spending could
A) decrease both the size and scope of govenment
B) increase the size, but not the scope of govenment
C) decrease the size but increase the scope of government
D) increase both the size and scope of government
E) None of the above
2. "It matters how the government spends any extra dollars" The economist who said this most likely believes that
A) A dollar spent on one government project could raise real GDP more then a dollar spend on some alternative government project
B) the AS curve is upward sloping
C) the tax multiplier is larger then the government spending multiplier
D) Government should increase in both size and scope
E) none of the abover