Refer to the above diagram. Assume that G and T1 are the relevant curves, the economy is currently at A, and the full-employment GDP is B. This economy has a(n):
A. cyclically adjusted budget surplus.
B. actual budget deficit.
C. actual budget surplus.
D. cyclically adjusted budget deficit.
Answer: A
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If an individual's housing purchases are always a constant fraction of income, then the income elasticity of demand for housing is
a. greater than one. b. equal to one. c. less than one. d. Cannot be determined from the available information.
Which of the following refers to efforts by businesses that focus on improvements in production technologies for existing products and on new production technologies for new or improved products?
A. Import competition B. Diffusion C. Research and development D. Balanced growth
Describe the environmental Kuznets curve
What will be an ideal response?
If the price is greater than the average variable cost, the firm should produce
A. where ATC is minimized. B. where AVC is minimized. C. zero. D. where MC=MR.