Suppose that the economy has a structural deficit of $100 billion and a budget deficit of $100 billion. It follows that output:
A. must be below its potential output.
B. could be at, above, or below potential output.
C. must equal potential output.
D. must be above potential output.
Answer: C
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Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B
If there is exceptionally good growing weather in the wapanzo bean growing region then supply will ________ and demand will ________. A) become case C; become case 1 B) become case C; stay at case 2 C) become case C; become case 3 D) stay at case B; become case 1
If you considered steak and lobster to be perfect substitutes for each other, your indifference curves between them would be L-shaped
Indicate whether the statement is true or false
Assuming that beer is a normal good, what will happen to the demand for beer near college towns if student income increased?
a. Demand will fall because students love these beers b. Demand will fall c. Demand will rise d. Supply would rise
A competitive producer supplies an additional unit of a good as long as the price is greater than the average per unit cost.
Answer the following statement true (T) or false (F)