To curb the problem of voters wanting immediate benefits and deferred costs, many state governments in the United States have:
A. made unfunded liabilities illegal.
B. resorted to greater use of monetary policy.
C. passed laws requiring balanced budgets.
D. stopped using fiscal policy.
Answer: C
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Suppose that along the aggregate demand curve, real GDP equals $14.2 trillion when the GDP deflator is 90. If the GDP deflator were 95, real GDP along the aggregate demand curve would equal
A) more than $14.2 trillion but less than $14.8 trillion. B) less than $14.2 trillion. C) $14.2 trillion. D) more than $14.8 trillion.
The government wants to increase its spending by $1 billion to stimulate the economy and is counting on the government spending multiplier to hel
A) constructing more low income housing B) a new cruise missile for the military C) expanding the school lunch program D) providing textbooks for college students
Regulation of industry is usually carried out by special government agencies that administer and interpret the law
a. True b. False Indicate whether the statement is true or false
In a factor market, payments flow to ______.
a. producers b. firms c. governments d. households