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AP® Macroeconomics

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Spending & Special Interest Groups

APMACR-GNXTUW

Suppose the Government drastically increased its spending on education funding even though the economy was at full employment.

Which of the following statements is true?

A

Retirees on fixed income will likely be helped due to lower inflation.

B

People who just locked in long term fixed mortgages would most likely be against the policy change.

C

Health Care workers on long-term contracts would be hurt financially from the change.

D

People holding real assets would not benefit from such a move.

E

Production possibilities curve will shift left in the long run.