To correct the budget deficit for inflation, we should
a. multiply the budget deficit by the price deflator for GDP.
b. subtract interest payments from tax revenues.
c. divide the budget deficit by nominal GDP.
d. divide the budget deficit by the consumer price index.
c
You might also like to view...
Fill in the blank: According to the authors of your text, traffic congestion can be reduced by ________ the spillover costs associated with driving
A) modernizing B) estimating C) externalizing D) internalizing
Should state taxes paid be deductible on federal taxes?
What will be an ideal response?
Assume that labor is the only factor of production and that wages in the United States equal $20 per hour while wages in Japan are $10 per hour. Production costs would be lower in the United States as compared to Japan if
A) U.S. labor productivity equaled 40 units per hour and Japan's 15 units per hour. B) U.S. labor productivity equaled 30 units per hour and Japan's 20 units per hour. C) U.S. labor productivity equaled 20 units per hour and Japan's 30 units per hour. D) U.S. labor productivity equaled 15 units per hour and Japan's 25 units per hour. E) U.S. labor productivity equaled 15 units per hour and Japan's 40 units per hour.
The steepness of the aggregate supply curve depends on the:
a. rate of inflation in the economy. b. change in relative prices of commodities. c. substitutability of the inputs used in producing various goods and services. d. ability of the producers to respond to price-level changes in the short run. e. the market rate of interest.