If the automatic stabilizers are creating budget deficits, the economy must be experiencing falling output
a. True
b. False
Indicate whether the statement is true or false
True
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An export subsidy is
A) a payment to a firm or individual that ships a good abroad. B) a fee that is charged to a country that ships goods to the U.S. C) a payment made to a foreign government in return for preferential trade treatment. D) illegal in the U.S. but is fairly common in the rest of the world. E) a limit on the quantity of a good or service that can be sold abroad.
Read "Teen Pregnancy Prevention: Welfare Reform's Missing Component," by Isabel Sawhill of the Brookings Institution
Is this an example of positive economics, normative economics, or a combination of both positive and normative economics? Briefly state the positive and/or normative economic arguments that are embedded in this article.
If Country A's reserve account is equal to +$300 billion, then:
a. There is an excess demand for Country A's currency in the foreign exchange market that is being met by the central bank selling enough domestic currency to make up the difference. b. There is an excess supply of Country A's currency in the foreign exchange market that is being met by the central bank buying enough domestic currency to make up the difference. c. Country A's reserves account cannot $300 billion. It must equal 0. d. Country A's current account must equal = -$300 billion. e. Country A's current account minus capital account must equal-$300 billion.
The total cost curve:
A. is always above the variable cost curve. B. is parallel to the variable cost curve. C. is the sum of the variable cost curve and fixed cost curve. D. All of these are true.