The large U.S. government budget deficits in the early 1980s were caused by
a. wasteful military spending
b. declining transfer payments triggered by more expenditures on education and training
c. President Reagan's attitude toward deficits
d. a recession, expanded military spending, and income tax cuts
e. recessionary gaps in GDP
D
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Which of the following is most likely to restore an economy to full employment, if it is operating below full employment due to a decrease in net exports?
A) Devaluation of the domestic currency B) A decrease in the demand for goods and services in the economy C) A decrease in investment in the economy D) An increase in the interest rate
Refer to Figure 13-2. Ceteris paribus, a decrease in the labor force would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
Explain Purchasing Power Parity
What will be an ideal response?
The members of Federal Reserve district bank boards of directors who are leaders in industry, commerce, and agriculture are known as
A) Class A directors. B) Class B directors. C) Class C directors. D) Class D directors.