Actual output exceeds the natural output when
A) the actual budget deficit is above the structural deficit.
B) the actual budget deficit is below the structural deficit.
C) the structural deficit is positive.
D) the structural deficit is negative.
B
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The desired reserve ratio is 10 percent. Joe deposits $1,000 in Bank A. Bank A keeps its minimum desired reserves and lends the excess to Fred. Fred spends his loan at J.C. Penney. J.C. Penney deposits the check it receives from Fred in Bank B
Bank B keeps its minimum desired reserves and lends the excess to Mary. How much can Bank B lend to Mary? A) $900 B) $90 C) $810 D) $100 E) $1,000
List five theoretical economic reasons why federalism might be desirable
What will be an ideal response?
During the recession of 2007-2009 in the United States, ________ relative to potential GDP
A) business fixed investment spending rose and net export spending declined B) consumption spending rose and residential construction spending declined C) federal government purchases rose and changes in business inventories declined D) net export spending rose and consumption spending declined
Refer to the table, in which investment is in billions. Which of the following scenarios would be consistent with the occurrence of cyclical asymmetry?
A. The Fed lowering the interest rate from 5 to 4 percent, while investment demand changes from columns (1) and (3) to columns (1) and (2).
B. The Fed raising the interest rate from 5 to 6 percent, while investment demand changes from columns (1) and (3) to columns (1) and (2).
C. The Fed lowering the interest rate from 7 to 6 percent, while investment demand changes from columns (1) and (2) to columns (1) and (3).
D. The Fed raising the interest rate from 7 to 8 percent, while investment demand changes
from columns (1) and (2) to columns (1) and (3).