Expressing the U.S. federal budget deficit as a percentage of Gross Domestic Product (GDP)
A) results in inflation-adjusted revenue and expenditure numbers.
B) helps us understand the size of the deficit relative to the size of the economy.
C) was useful through the 1980s, but is no longer helpful because both the deficit and real Gross Domestic Product (GDP) have grown so large.
D) is only useful if the budget deficit is rising at an annual rate of more than 4 percent.
B
You might also like to view...
Explain why most indifference curves are convex
What will be an ideal response?
The optimal number of workers to be hired by a firm operating in a competitive labor market is where:
a. P = MRP. b. MP = MRP. c. MRP = w. d. P = w. e. TWC = w.
Which of the following could cause the supply of carrots to decrease?
a. Consumers' incomes decrease. b. There is a technological advance in carrot production. c. Fertilizer costs increase. d. The number of farmers growing carrots increases. e. The price of carrots decreases.
Michael values a stainless steel refrigerator for his new house at $3,500, but he succeeds in buying one for $3,000 . Michael's willingness to pay is
a. $500. b. $3,000. c. $3,500. d. $6,500.