How sensitive is the structural deficit to the state of the economy?
a. It is insensitive to the state of the economy.
b. The structural deficit changes cyclically with the economy.
c. Changes in the structural deficit trigger opposite swings in the economy.
d. The structural deficit changes countercyclically with the economy.
a
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In the circular flow model, money flows from the business sector to the household sector through the:
a. product market. b. capital market. c. goods market. d. services market. e. resource market.
Refer to the graph below, which shows the market for bicycles. S1 and D1 are the original supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply curves. Starting from the initial equilibrium (point 1), what point on the
graph is most likely to be the new equilibrium after a sharp increase in traffic accidents involving cyclists, and the payment of subsidies to bicycle producers?
A. 3
B. 4
C. 5
D. 6
The marginal utility per dollar you are spending on iTunes music downloads is less than the marginal utility per dollar you are spending on Red Bull. According to the rule of equal marginal utility per dollar? spent, what can you do to increase your total utility from consumption of music downloads and Red? Bull?
Related to the Economics in Practice on p. 466: Under the Save More Tomorrow retirement plans, employees can pre-commit to save more
A. at the beginning of each fiscal year. B. when income tax rates increase. C. whenever they get a pay raise. D. when the opt out of the social security system.