Refer to the above diagram. Assume that G and T1 are the relevant curves, the economy is currently at A, and the full-employment GDP is B. This economy has a(n):
A. cyclically adjusted budget surplus.
B. actual budget deficit.
C. actual budget surplus.
D. cyclically adjusted budget deficit.
Answer: A
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Holding other factors constant, if oil prices rise relative to the prices of other products, then the real wages of oil workers will ________ and employment of oil workers will ________.
A. increase; increase B. decrease; not change C. increase; decrease D. decrease; increase
The fundamental economic problem faced by individuals is
A) scarcity. B) comparative advantage. C) fair allocations of goods and services. D) randomness in the distribution of income.
Movements along the consumption function are called
a. autonomous consumption. b. leakage consumption. c. induced consumption. d. injected consumption.
The difference between U.S. financial regulation between the 1930s-to-1980 period and the 1980-to-2010 period is:
a. The earlier period was characterized by relatively loose government regulations and the later one was characterized by stricter government regulations. b. The earlier period was characterized by heavy use of the originate-to-hold" strategy. c. The earlier period was characterized by recurring, nation-wide speculative housing bubbles. d. The earlier period was characterized by heavy use of securitization. e. All of the above.