When analyzing the effects of the government budget deficit
A) no distinction must be made between an economy where full employment exists and one where substantial unemployment exists.
B) it is important to examine the effects of the reported capital budget and the reported operating budget separately.
C) there should be a comparison of the effect of the deficit to the effects of higher taxes needed to eliminate it.
D) the baseline budget should be used since it is the most accurate.
C
You might also like to view...
The existence of the tradeoff along the PPF means that the PPF is
A) bowed outward. B) linear. C) negatively sloped. D) positively sloped.
Product differentiation:
a. refers to the attempt of firms to make their products look like those of the other firms in the industry. b. refers to the attempt of firms to make real or apparent differences in essentially substitutable products look different in the minds of the consumers. c. refers to the advantage big firms have in research and development. d. is a common characteristic of a perfectly competitive market structure. e. is only employed in a monopoly market structure.
Plurality voting fails which of the criteria for an ideal voting system?
A. Unanimity B. Independence of irrelevant alternatives C. Transitivity D. No dictator
Standards of living are measured by
A. unemployment rates. B. inflation rates. C. real GDP per capita. D. nominal GDP per capita.