Large federal budget deficits:
a. can best be reduced by automatic stabilizers
b. make it difficult to use discretionary fiscal policy.
c. in the mid to late 1980s were the result of a severe recession.
d. constitute only about 1 percent of GDP.
e. have little to do with the growth of the federal debt.
b
You might also like to view...
Gold is
a. not a resource in the economy b. an example of a renewable resource for the economy c. an example of a nonrenewable resource for the economy d. part of the capital resources of the economy e. part of the entrepreneurial resources of the economy
Think totals: In a perfectly competitive labor market, the total labor cost curve, TLC
a. is upward sloping, and the marginal labor cost curve, MLC, is downward sloping b. is downward sloping, and the marginal labor cost curve, MLC, is upward sloping c. and the marginal labor cost curve, MLC, are both horizontal curves d. is horizontal and the marginal labor cost curve, MLC, is upward sloping e. is upward sloping, and the marginal labor cost curve, MLC, is horizontal
The fact that the United States has a trade deficit means that:
A. foreign countries can have comparative advantages in all goods. B. foreign countries can have comparative advantages in more goods compared to the United States. C. the United States is producing more than it is consuming. D. the United States is lending more to foreign countries than it is borrowing from foreign countries.
Assume a family that earns $20,000 pays $1,000 in income taxes, while a family that earns $40,000 pays $3,750 in income taxes. In this situation, the income tax system is
A) progressive. B) regressive. C) proportional. D) one of the above but we cannot tell which one without more information.