Refer to the diagram, where T is tax revenues and G is government expenditures. All figures are in billions of dollars. If the full-employment GDP is $400 billion while the actual GDP is $200 billion, the:
A. actual budget deficit exceeds the cyclically adjusted budget deficit.
B. actual budget deficit is less than the cyclically adjusted budget deficit.
C. cyclically adjusted deficit exceeds the cyclical deficit.
D. cyclical deficit exceeds the cyclically adjusted deficit.
A. actual budget deficit exceeds the cyclically adjusted budget deficit.
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Activist policymakers, compared to nonactivists, are more likely to emphasize ________ considerations and to prefer ________
A) short-run; rule-determined B) long-run; discretionary policy C) short-run; discretionary policy D) long-run; rule determined E) business; flexible plans
Suppose automobile salesmen are required to pay a $1000 tax per car sold
Is it likely that the auto salesmen will bear the entire burden of this tax? Why or why not? Would it matter if the demanders were legally required to pay the tax? Explain in detail your answer.
Equality of opportunity demands fair rules and does not require transfer programs
a. True b. False
The industrial organization or (IO) perspective predicts
a. firm's profitability differs only if they are in different industries b. firms within an industry are equally profitable c. firm's profitability within industries varies widely d. Only A&B