When government expenditures are greater than tax revenues
A) there will be budget surplus.
B) the public debt will be reduced.
C) there will be budget deficit.
D) automatic stabilizers do not kick in.
Answer: C) there will be budget deficit.
You might also like to view...
If regulators require a monopoly to earn zero economic profit, the monopoly will produce the quantity where
a. the marginal cost curve crosses the average cost curve. b. the marginal cost curve crosses the demand curve. c. the average cost curve crosses the demand curve. d. the marginal cost curve crosses the marginal revenue curve.
Strikes occur in about ________ percent of the labor-management negotiations
A) 2 B) 16 C) 25 D) 40
A price ceiling of $8 placed on the market in the graph shown:
A. is non-binding, and does not affect the market.
B. is binding, and causes a shortage.
C. is binding, and causes a surplus.
D. is non-binding, and does not prevent the market from reaching equilibrium.
A vertical supply curve represents:
A) an inverse relationship between price and quantity supplied. B) an independent relationship between price and quantity supplied. C) an independent relationship between price and supply. D) a direct relationship between price and quantity supplied. E) a direct relationship between price and supply.