If the federal government runs a budget deficit, but the budget deficit as a percent of GDP is less than the growth rate of real output, the:
A. national debt will decrease as a share of GDP.
B. national debt will remain a constant share of GDP.
C. national debt will increase as a share of GDP.
D. size of the national debt (in dollar value) will decline.
Answer: A
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One reason the supply of carpenters is greater than the supply of physicians is because:
a. physicians do not belong to a union. b. carpenters demand less income. c. carpenters belong to unions. d. none of the above.
According to the definitions of private and public saving, if Y, C, and G remained the same, an increase in taxes would
a. raise both private and public saving. b. raise private saving and lower public saving. c. lower private saving and raise public saving. d. lower private and public saving.
Government always makes individuals better off when it removes them from a prisoner's dilemma setting
Indicate whether the statement is true or false
The MRP schedule of the imperfect competitor declines _____ than that of the perfect competitor.
Fill in the blank(s) with the appropriate word(s).