When government spending is less than the tax revenues during a specific time period, this is known as a
A) government budget deficit. B) government budget surplus.
C) balanced budget. D) public debt.
B
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Bill purchases property insurance for his office building, which includes coverage for fire damage. The policy offers premium discounts for smoke detectors, fire alarms, fire extinguishers and sprinkler systems
This is an incentive system to help avoid A) adverse selection. B) moral hazard. C) optimal-stopping. D) none of the above
If the maturity of a debt instrument is less than one year, the debt is called
A) short-term. B) intermediate-term. C) long-term. D) prima-term.
A permanent marginal tax rate cut would be expected to shift both the short-run and the long-run aggregate supply curves to the right
Indicate whether the statement is true or false
When real GDP is less than potential GDP, an increase in government expenditures will __________ real GDP and __________ the price level
a) increase; raise b) increase; lower c) decrease; raise d) decrease; lower