How is the public debt calculated?
A. By subtracting consumption and investment from government spending each year and then cumulating the annual totals over the years of the nation
B. By adding up consumption, investment, government purchases, and net exports and then cumulating the annual totals over the years of the nation
C. By computing the difference between annual government tax revenues and annual government spending and cumulating the differences over the years of the nation
D. By subtracting current government spending from current government tax revenues
Answer: C
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If the current account balance is negative, net interest is $100 billion and net transfer is -$100 billion, then
A) exports exceed imports. B) imports exceed exports. C) the official settlements account must be positive. D) real GDP exceeds potential GDP. E) the official settlements account must be negative.
When a monopoly price discriminates, it
A) increases the amount of consumer surplus. B) decreases its economic profit. C) converts consumer surplus into economic profit. D) converts economic profit into consumer surplus. E) has no effect on the deadweight loss in the market.
Refer to the figure above. What is the domestic price of chairs in Lithasia in the absence of trade?
A) $2 B) $3 C) $4 D) $6
What is personal income tax? On which principle does the federal government levy this tax?
What will be an ideal response?