The structural deficit is
A) the difference between the actual deficit and the natural employment deficit and it increases whenever income rises.
B) identical to the natural employment deficit and it decreases whenever tax rates are cut.
C) identical to the natural employment deficit and it increases whenever the natural level of output increases.
D) identical to the natural employment deficit and it decreases whenever the natural level of output increases.
D
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The government uses fiscal and monetary policy to mitigate the effects of economic fluctuations
a. True b. False Indicate whether the statement is true or false
If the normalization of trade relations between the U.S. and Cuba legalizes the sale of Cuban cigars in our country, it would
A. increase equilibrium price and decrease equilibrium quantity for Cuban cigars. B. decrease equilibrium price and increase equilibrium quantity for Cuban cigars. C. increase both the equilibrium price and quantity for Cuban cigars. D. decrease both the equilibrium price and quantity for Cuban cigars.
After the harvest, some farmhands lose their jobs. They are considered to be
A. Structurally unemployed. B. Cyclically unemployed. C. Frictionally unemployed. D. Seasonally unemployed.
When the price of cheddar cheese increases 15%, quantity demanded decreases 15%. The price elasticity of demand for cheddar cheese is ________ and total revenue from cheddar cheese sales will ________.
A. elastic; increase B. unit elastic; not change C. elastic; decrease D. inelastic; decrease