Answer the following questions true (T) or false (F)
1. The total value of U.S. Treasury bonds outstanding is called the federal government debt.
2. The cyclically adjusted budget is calculated at potential GDP.
3. A law requiring the government to balance its budget in each year would serve as an automatic destabilizer.
1. TRUE
2. TRUE
3. TRUE
You might also like to view...
In the economy of Euphoria, 400 people have jobs, 200 people are not working but are searching for work, and 100 people don't work and don't seek work. The unemployment rate is
A) 20 percent. B) 25 percent. C) 33 percent. D) 50 percent. E) none of the above.
An advocate of supply-side fiscal policy would advocate which of the following?
A. imposition of new taxes on technological advances B. more regulation C. increase in resource prices D. reduction in taxes
Refer to the above figure. Which panel represents the long-run supply curve for a constant cost industry?
A. Panel A B. Panel B C. Panel C D. Panel D
Which of the following can be a barrier to entry, closing a market to new firms?
A. an elastic industry demand curve B. ease of obtaining capital financing C. diseconomies of scale D. control of a vital resource by one producer