It is likely that a constitutional amendment that required the government always to run a balanced budget would
a. contribute to a more stable level of output.
b. mitigate the crowding-out effect.
c. eliminate the economy's automatic stabilizers.
d. All of the above are correct.
c
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
If the marginal social cost of generating a kilowatt of electricity is $0.10 and the marginal private cost is $0.08, what is the marginal external cost?
A) $0.18 B) $0.10 C) $0.08 D) $0.02 E) $0.80
A coupon bond that has no maturity date and no repayment of principal is called a
A) consol. B) cabinet. C) Treasury bill. D) Treasury note.
The rationality assumption states that
A) all actions taken by consumers are based on what is good for society. B) people make decisions regardless of how the outcome will affect them. C) people make decisions to buy only those goods that they need rather than goods that they want. D) people do not intentionally make decisions that would leave them worse off.