If the inflation rate is 7 percent, real GDP growth is 2 percent, and the current budget deficit is $100 billion, what must the current national debt be if the debt-GDP ratio is to remain the same?
A) $1,111 billion
B) $2,000 billion
C) $1,429 billion
D) $5,000 billion
A
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The goal of endogenous growth theory is to explain ________
A) supply and demand in individual markets B) the causes of technological advance C) the business cycle D) the relationship between economic growth and the rates of inflation and unemployment
If the wage rate were $420, how many workers would be hired?
A. 1
B. 2
C. 3
D. 4
Over the two decades leading up the 2008 crisis, ________ interest rates meant that consumers could take on ________ debt without significantly increasing the amount of debt service they had to pay.
A. falling; less B. falling; more C. rising; more D. rising; less
The table below shows the cyclically adjusted budget surplus as a percentage of GDP over a five-year period.YearSurplus(+)11.0%20.930.540.251.5Refer to the above information. In which year(s) was fiscal policy expansionary?
A. Years 1 and 5 B. Year 4 only C. Year 2 only D. Years 2, 3, and 4