Which, if any, of the following statements are true?

Question

Accepted Answer

If government expenditure including transfers and interest payments exceeds its revenue, government debt rises.

Accepted Answer

If
expectations are anchored, the Phillips curve will not shift upwards even
when actual inflation rises, because everyone
expects the central bank to bring inflation back to target.

Answer

The paradox of thrift means that adopting a policy of austerity in a recession (by reducing government expenditure) will worsen the public finances as compared with a policy that keeps government expenditure unchanged.

Crowdly

Which, if any, of the following statements are true?

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