For the convenience of analyzing the part of the deficit that is sensitive to fiscal policy, the actual deficit is divided into which of the following components?
A. Frictional and seasonal deficits.
B. Automatic stabilizers and autonomous consumption.
C. Structural and cyclical deficits.
D. C, I, G, X, and M.
Answer: C
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Refer to the Article Summary. All else equal, if countries decide to enact protectionist measures against Chinese steel imports, the price of steel in those countries will ________ and the quantity of steel demanded in those countries will ________
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
An individual's need for liquidity would increase if
A) the average value of transactions carried out by the individual fell. B) the average value of transactions carried out by the individual rose. C) the individual got a raise. D) the individual received a new ATM card. E) the individual wanted to avoid risks.
The aggregate supply of labor is the
A) total amount of time a person works over his or her lifetime. B) total amount of time a person spends in the labor force over his or her lifetime. C) unemployment rate. D) sum of the labor supplied by everyone in the economy.
Consider the segment of a demand curve along which all price elasticities of demand are less than 1 . A decrease in price anywhere along that segment
a. shifts that segment of the demand curve to the right b. increases total revenue c. decreases total revenue d. shifts that segment of the demand curve to the left e. raises the price elasticity of demand