Figure 32-1
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In Figure 32-1, there are four levels of income. G is government expenditures and TT is taxes less transfers. Y3 is the full-employment level of income. At Y3
A. there is an official deficit but a structural budget balance.
B. there is a structural deficit but an official budget surplus.
C. the official and structural deficit are in balance.
D. both the official and structural budgets show a deficit.
Answer: C
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Refer to the figure above. With the tariff, the government collects
A) $50,000. B) $60,000. C) $100,000. D) $220,000.
The daily reserve supply curve is:
A. vertical. B. horizontal. C. upward sloping. D. downward sloping.
Which statement is false?
A. Barter is the alternative to money in the United States. B. Barter involves a double coincidence of wants. C. M2 is larger than M1. D. Checks are considered money.
Which of the following is the best example of an action that imposes an external cost?
A. Wear and tear on your car as the result of frequent use. B. Deterioration in the average quality of a house you own as the result of poor maintenance. C. Water pollution from an upstream factory that increases the cost of providing clean water to downstream residents. D. A rose garden on your property from which your neighbor gets much enjoyment.