Assume that in the United States the actual deficit is $300 billion. If the United States were at full employment, the deficit would be $100 billion. The structural deficit in the United States is
A. $100 billion.
B. $200 billion.
C. $300 billion.
D. $400 billion.
Answer: A
You might also like to view...
Refer to Figure 12-17. The graphs depicts a short-run equilibrium. How will this differ from the long-run equilibrium? (Assume this is a constant-cost industry.)
A) The price will be higher in the long run than in the short run. B) The market supply curve will be further to the left in the long run than in the short run. C) The firm's profit will be lower in the long run than in the short run. D) Fewer firms will be in the market in the long run than in the short run.
Empirical evidence suggests that: a. technological change leads to higher unemployment rates
b. the unemployment rate in the U.S. in the late 1990s was lower than that in the 1970s. c. the unemployment rate in the U.S. in the late 1990s was higher than that in the 1970s. d. changes in the growth rate of population lead to higher unemployment rates. e. increase in government regulation leads to higher unemployment rates.
Say the required reserve ratio is 10 percent. If you pay back a loan of $20,000 a bank had previously made to you, the act of paying back the loan: a. adds $2,000 in bank reserves
b. adds $20,000 in bank reserves. c. eliminates $2,000 in bank reserves. d. eliminates $20,000 in bank reserves.
Which of the following transactions would represent an addition to a nation's current gross domestic product?
A. Ms. Smith purchases a share of stock in an automobile company. B. A retailer increases her stock of imported shoes. C. The government increases its domestic purchases of food for use by the military. D. A corporation sells shoes from last year's inventory. E. A mother sells her car to her daughter.