The structural deficit represents
A. Federal revenues minus expenditures under current fiscal policy at current output.
B. The difference between expenditures at full employment and expenditures at cyclical unemployment.
C. Federal revenues minus federal expenditures at full employment under prevailing fiscal policy.
D. A measure of the size of recessionary or inflationary gaps.
Answer: C
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Which one of the following is/are INCORRECT? An argument against floating exchange rates is that
A) a fixed rate automatically prevents instability in the domestic money market from affecting the economy if shocks come from home domestic money market. B) a fixed rate might become unpredictable, complicating economic planning. C) a rise in money demand under a fixed exchange rate would have no effect on the exchange rate and output. D) a fixed rate functions within the price-specie-flow mechanism and maintains a balance of payments equilibrium. E) a fixed rate automatically prevents instability in the economy from output market shocks.
One World View article is titled "Bono Says "Stupid" to Pay Irish Taxes."" The band U2 moved its corporate headquarters to Amsterdam because the Irish government
A. Capped remittances to band members in other countries. B. Capped tax-free royalty income at $360,000. C. Raised taxes on corporate profits. D. Raised marginal tax rates on upper-income earners.
Because the cost of healthcare as a percent of GDP rises and as a result productivity gains tend to fall, it is said the healthcare industry suffers from ________________________.
Fill in the blank(s) with the appropriate word(s).
Firms should hire additional units of a resource as long as the:
A. marginal product of the resource exceeds the price of the resource multiplied by the quantity of output produced. B. marginal product of the resource is less than the price of the resource. C. price of the output produced is positive. D. marginal revenue product of the resource exceeds the cost of an additional unit of the resource.