The table below shows the cyclically adjusted budget deficit as a percentage of GDP over a five-year period.YearDeficit(-)11.5%21.432.041.851.5Refer to the above information. In which year was fiscal policy expansionary?
A. Year 3
B. Year 2
C. Year 4
D. Year 5
Answer: A
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If tax revenues equal 20 percent of total output and government expenditures equal 25 percent of total output, then there is a:
A. trade surplus. B. trade deficit. C. government budget deficit. D. government budget surplus.
A bank's reserve ratio is 5 percent and the bank has $1,000 in deposits. Its reserve amount to
a) $5 b) $50 c) $95 d) $950
The four components of aggregate expenditures are:
A. consumption, imports, government spending, and net exports. B. consumer durables, investment, government spending, and net exports. C. consumption, investment, government spending, and net exports. D. consumption, interest payments, government spending, and net exports.
In economic analysis, people's resources are
A) limited and their wants are unlimited. B) unlimited and their wants are also unlimited. C) limited and their wants are also limited. D) unlimited and their wants are limited.