According to the textbook, why didn't the U.S. government mount chronic budget deficits before 1970?
A) Elected officials didn't know how to use the federal budget as a policy tool.
B) Deficits were viewed as an irresponsible moral failure on the part of government.
C) The U.S. had a constitutional balanced budget amendment.
D) For all of the above reasons.
E) For none of the above reasons.
B
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The devaluation of a currency develops once ________
A) an increase in the value of a country's currency develops B) a monetary authority runs out of international reserves C) the level of domestic income falls D) an increase in the domestic price level develops
Studies have shown that when people are asked to imagine a hypothetical illness, the amount of money they say they would be willing to pay to avoid getting the illness is ________ they would be willing to pay for a cure if they were already sick.
A. more than B. the same as C. unrelated to the amount D. less than
Which goods did NOT decrease in price between 2000 and 2015?
A. Alcoholic beverages away from home B. Toys C. Televisions D. Personal computers and peripherals
Refer to the diagram. The change in aggregate expenditures as shown from (C + I g + X n1 ) to (C + I g + X n2 ) will produce:
A. a decrease in real GDP.
B. an inflationary expenditure gap if 0D is this nation's full-employment level of GDP.
C. an increase in real GDP if 0A is this nation's full-employment level of GDP.
D. an inflationary expenditure gap if 0B is this nation's full-employment level of GDP.