The federal government deficit or surplus
A. is not affected by the level of GDP.
B. is not affected by discretionary fiscal policy.
C. may be more a symptom of economic distress than a result of intentional fiscal policy.
D. should be balanced at all times to prevent business cycles.
C. may be more a symptom of economic distress than a result of intentional fiscal policy.
You might also like to view...
Identify the correct statement about net exports
a. The value of net exports increases as real domestic income increases. b. The value of net exports increases as real domestic income decreases. c. The value of net exports is dependent on the amount of government purchases. d. The value of net exports is always positive. e. The value of net exports is always negative.
One problem facing public goods is the ________ ________ problem
a. rent seeking b. free-rider c. rational ignorance d. there are no problems with public goods
Recall the Application about the free-agent market for professional baseball pitchers to answer the following question(s).Recall the Application. Baseball teams know more about the health of free-agent pitchers than the pitchers themselves.
Answer the following statement true (T) or false (F)
The income effect of a price change results in a
A) shift of the demand curve when income changes. B) movement along the demand curve due to a change in relative prices. C) shift of the demand curve due to a change in purchasing power brought about by the price change. D) movement along the demand curve due to a change in purchasing power brought about by the price change.