To reduce cyclical unemployment the government might:
a) Increase the budget surplus
b) Increase the balance of payments deficit
c) Increase the budget deficit
d) Reduce government expenditure
Answer: c) Increase the budget deficit
You might also like to view...
As a typical firm increases its output, its marginal cost
A) is constant. B) decreases at first and then increases. C) increases at first and then decreases. D) decreases. E) is negative at first and then positive.
The quantity of real GDP demanded equals $16.2 trillion when the price level is 90. If the price level rises to 95, the quantity of real GDP demanded equals
A) less than $16.2 trillion. B) $16.2 trillion. C) more than $16.2 trillion. D) more information is needed to determine if the quantity of real GDP demanded increases, decreases, or does not change.
The main policy-making organ of the Federal Reserve System is
A) the Board of Governors. B) the Federal Reserve branch banks. C) the Federal Reserve chairman and the Federal Reserve branch bank presidents. D) the Federal Open Market Committee.
The price elasticity of demand for gasoline is estimated to be -0.2. Two million gallons are sold daily at a price of $1. Use this information to calculate a demand curve for gasoline assuming it is linear
What will be an ideal response?