Which of the following statements is FALSE?
A. The federal budget deficit in 2020 was about 4 percent of the GDP.
B. The public debt of $10 billion is the accumulated debt of all U.S. individuals, firms, and institutions.
C. A budget deficit of $10 billion in a given year increases the public debt by $10 billion.
D. During the past five years, the U.S. public debt has been increasing.
Answer: B
You might also like to view...
If cyclical unemployment is eliminated
a. GDP is at its full-employment level b. GDP is at its equilibrium level c. the loanable funds market is in equilibrium d. the aggregate supply curve shifts upward e. potential output has increased
Suppose that GDP was $200 billion in year 1 and that all other components of expenditures remained the same in year 2, except that business inventories increased by $10 billion. GDP in year 2 is ________.
A. $200 billion B. $180 billion C. $190 billion D. $210 billion
Corn and beef prices are typically linked because
A. corn is a complement to beef. B. they are alternative outputs. C. corn is an input to beef. D. corn is a substitute for beef.
Which of these explain why growth is an important economic goal?