What is the difference between the federal budget deficit and the national debt?
The federal budget deficit is a flow concept representing the differences between government revenue and government expenditures for a given year. The national debt is a stock concept. It is equal to the sum of all past government deficits and surpluses.
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By changing its regulations, the Fed ___ force the banking system to increase the money supply; by changing its regulations, the Fed ____ force the banking system to decrease the money supply:
a. Can; can b. Can; cannot c. Cannot; can d. Cannot; cannot.
Refer to the accompanying figure.
An economy in short-run equilibrium at point A has a(n) ________ gap. The gap could be eliminated by the self-correcting mechanism of the economy and eventually achieve long-run equilibrium at point ________ or the central bank could intervene with monetary easing establishing the long-run equilibrium at point ________.
A. recessionary; C; B B. expansionary; C; B C. expansionary; B; C D. recessionary; B; C
According to New Keynesians, which of the following is a key factor that determines the inflation rate?
A. the menu cost B. supply shock C. fiscal policy D. anticipated future inflation
Excise taxes on imported goods that help shield domestic producers of the good are called:
A. protective tariffs. B. import quotas. C. revenue tariffs. D. voluntary export restrictions.