An expansionary fiscal policy will
A) always result in a budget deficit.
B) always result in a budget surplus.
C) sometimes result in a budget deficit.
D) never result in a budget surplus.
E) More information is necessary to answer this question.
C
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The United States is one of the richest nations in the world,
A) so it does not need to trade with poor nations in order to achieve any gains from trade. B) so it might not have a comparative advantage in producing any goods. C) but it can still benefit from specialization and trade. D) so it must have a comparative advantage in the production of all goods. E) so it must have an absolute advantage in the production of all goods.
Assume that an inflationary gap must be closed by reducing aggregate expenditures. If consumers refuse to cut spending on consumption and producers won't cut demand for investment goods, the President:
a. can do nothing. b. must build more roads. c. must borrow from Wall Street. d. must increase Social Security expenditures. e. must cut government spending.
Human capital deepening is typically the most important contributor to U.S. economic growth
a. True b. False Indicate whether the statement is true or false
Look at the following data: GDP = $11,920 billion; investment = $2,100 billion; exports = $500 billion; government purchases = $1,450 billion; consumption = $8,500 billion. What does import spending equal?
A) $630 billion B) $370 billion C) $1,320 billion D) $430 billion E) $474 billion