One of the long-run effects of higher government budget deficits is
A) a redistribution of real Gross Domestic Product (GDP) away from government-provided goods and toward more privately provided goods.
B) an increase in the government's share of the nation's economic activity.
C) growth in the economy's private sector at the same time the government sector shrinks.
D) a fall in the equilibrium price level.
B
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Which of the following constitutes an input to the Cobb-Douglas production function?
A) capital B) labor C) total factor productivity D) all of the above E) none of the above
When personal computers were first produced, the price was very high. As time passed, the price of personal computers fell because
A) the initial price was too high and nobody bought personal computers. B) people's incomes increased and personal computers are an inferior good. C) the demand for personal computers decreased. D) there were technological advances in the production of personal computers. E) None of the above answers is correct.
In 2001, Congress and President Bush instituted tax cuts. According to the short-run Phillips curve, in the short run this change should have
a. reduced inflation and unemployment. b. raised inflation and unemployment. c. reduce inflation and raised unemployment. d. raised inflation and reduced unemployment.
If an economy declined by 3 percent in one year, in order for the economy to return to trend growth within two years, it would have to increase at an annual rate that is
A. unknown. B. greater than 3 percent. C. less than 3 percent. D. equal to 3 percent.