Why do economists think that the structural deficit is a good measure of the direction of fiscal policy?
A. Because it adjusts over the business cycle and reflects the fiscal stimulus of policy.
B. Because it changes when policy changes, rather than when the economy changes.
C. Because it changes when monetary policy changes, reflecting the interest rate cost of debt.
D. Because it adjusts automatically, rather than requiring specific legislation.
Answer: B
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Hitler's Germany was an example of a _________ economic system.
A. Capitalist B. Fascist C. Communist D. Socialist
The Lorenz curve would be a diagonal line if income were distributed equally.
Answer the following statement true (T) or false (F)
Which of the following best characterizes the intersection of Y* and AE*?
a. the point toward which the economy moves
b. the point away from which the economy moves
c. the hypothetical but unattainable point of equilibrium
d. the point at which, once reached, the economy remains unchanged
In 2015, the volume of U.S. imports from China were
A. larger than the volume of U.S. imports from Europe. B. larger than the volume of U.S. imports from Mexico. C. larger than the volume of U.S. imports from Canada and Mexico combined. D. none of the options are correct.