According to the government budget constraint, any excess of public expenditures and transfers over taxes and user fees must be funded by
A) private borrowing.
B) government borrowing.
C) U.S. Treasury money creation.
D) Federal Reserve money creation.
B
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One reason that the Phillips curve “broke down” is that it
A. is unable to explain short-run movements in inflation and unemployment, but does a better job of explaining long-run movements. B. assumes a quick-acting self-correcting mechanism, and the economy has a very slow self-correcting mechanism. C. is a statistical relationship, and some of the points are not sustainable in the long run. D. cannot explain demand-side inflation, and it collapsed when demand-side inflation was predominant in the 1970s.
The labor-force participation rate equals the percentage of the labor force that is employed
a. True b. False Indicate whether the statement is true or false
U.S. exports are included in aggregate demand because the exports contribute to the total ______.
a. spending on goods and services by U.S. consumers b. U.S. demand for foreign goods and services c. U.S. sales of goods and services by foreign producers d. demand for U.S. goods and services
A small, one-unit change in value is called a marginal change.
Answer the following statement true (T) or false (F)