A balanced budget amendment to the Constitution, proposed several times in the 1990s
A. Would prevent recessions.
B. Would require the federal budget to be balanced every year.
C. Would automatically produce surpluses during recessions and deficits during inflations.
D. Would require the federal budget to be balanced over the course of the business cycle.
B. Would require the federal budget to be balanced every year.
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Under what conditions is it most likely that a corporation will issue new stock as a form of finance?
A. When the interest rate is rising B. When the interest rate is falling C. When the firm’s stock price is falling D. When bond prices are very high
How do we determine whether a firm has maximized profits?
What will be an ideal response?
A decision at the margin Eleanor is a hard-working college senior. One Thursday, she decides to work nonstop until she has answered 50 practice problems for her economics course. She starts work at 8:00 AM and uses a table to keep track of her progress throughout the day. She notices that as she gets tired, it takes her longer to solve each problem. Time Total Problems Answered 8:00 AM 0 9:00 AM 20 10:00 AM 35 11:00 AM 45 Noon 50 Use the table to answer the following questions. The marginal, or additional, gain from Eleanor's second hour of work, from 9:00 AM to 10:00 AM, is Points: 1 / 1 The marginal gain from Eleanor's fourth hour of work, from 11:00 AM to noon, is
What will be an ideal response?
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.