If the government levies $20 billion in taxes to finance additional spending on military weapons, the net impact on total employment will be a a substantial increase in employment because the additional spending will create lots of jobs.b a substantial decrease in employment because the higher taxes will destroy lots of jobs. c small because the higher taxes will reduce spending in the private sector, which will tend to offset any jobs created by the government spending. d a substantial expansion in employment, but only if the additional spending leads to an increase in the general level of prices.
This question was answered on: May 23, 2022
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