If the economy's full-employment output is $6 trillion, actual output is $3.5 trillion, and the budget deficit is $20 billion, the deficit in this case is known as a
A. cyclical deficit.
B. structural deficit.
C. natural employment deficit.
D. debt deficit.
Answer: A
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If real GDP per person was equal to $2,000 in 1900 and grew at a 1 percent annual rate, what would be the value of real GDP per person 100 years later?
A. $2,210 B. $4,000 C. $20,000 D. $5,410
Refer to Goods X and Y. How would a budget line be affected if income and both prices all simultaneously doubled?
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. It would shift out so that all quantities are doubled. b. It would shift in so that all quantities are halved. c. It would not be affected. d. The slope would be doubled.
Jack buys a computer from Sam, knowing fully well that the technology used in it is obsolete. In this case, the trade is
A. beneficial to both parties. B. beneficial only to Sam. C. beneficial only to Jack. D. not beneficial to either of them.
Buying assets like stocks and bonds is a way to:
A. save. B. be a market maker. C. spend. D. invest.