If the federal government runs a budget deficit, but the budget deficit as a percent of GDP is less than the growth rate of real output, the
a. national debt will decrease as a share of GDP.
b. national debt will remain a constant share of GDP.
c. national debt will increase as a share of GDP.
d. size of the national debt (in dollar value) will decline.
A
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The price elasticity of supply increases as firms have more time to adjust
Indicate whether the statement is true or false
B. how to distribute resources equally among all members of society. C. that people's means often exceed their wants. D. that people do not know how to rationally allocate resources
A. virtually unlimited resources to satisfy virtually unlimited wants. B. limited resources to satisfy virtually unlimited wants. C. unlimited resources to satisfy limited wants. D. limited resources to satisfy limited wants.
In the above graphs, an inverse relationship is shown by
A. Graph A. B. Graph B. C. Graph C. D. Graph D.
According to Say's law, there cannot be overproduction of goods and services because:
A. planned aggregate expenditures sometimes fall short of total output. B. prices and wages are "sticky" or inflexible in the downward direction. C. demand creates its own supply. D. supply creates its own demand.