Suppose that the federal budget is balanced when GDP is at potential GDP. If equilibrium GDP falls below potential,
A) this will result in a current budget deficit.
B) government transfer payments will be rising and tax receipts will be falling.
C) the cyclically adjusted budget will be balanced.
D) All of the above are correct.
D
You might also like to view...
A firm hires labor up to the point where the
A) real wage rate equals the nominal wage rate. B) real wage rate exceeds the nominal wage rate. C) additional hour of labor produces extra output that equals the real wage rate. D) additional hour of labor produces extra output that equals the nominal wage rate. E) firm can sell the extra output.
You have chosen to take a trip during spring break. If you had not gone, you would either have worked at a temporary job or studied for exams. The opportunity cost of your trip is
A) the wages you would have earned from working. B) the lower grade earned by not studying. C) the wages you would have earned from working and the lower grade earned by not studying. D) the value of the tri
During the late 1800s and early 1900s,
(a) American society clearly recognized the value of labor in the profit process. (b) U.S. legislation and courts of law appeared hostile to the interests of organized working employees. (c) society, at large, generally favored the efforts of workers to combine into unions to negotiate with employers. (d) organized labor had a stable and respected place in politics.
As the world economy becomes more integrated through globalization
A) the Fed will find it easier to conduct monetary policy. B) the Fed will have a more difficult time reaching its money supply growth rate targets. C) the Fed will rely less on open market operations and more on changing the required reserve ratio when conducting monetary policy. D) U.S. interest rates will determine world interest rates.