What are the differences between the federal debt, the budget deficit, and the primary budget deficit?
What will be an ideal response?
The federal debt is the total value of government bonds outstanding. The budget deficit is annual difference between government expenditure and tax revenue. The primary budget deficit is the budget deficit excluding interest payments, or: government purchases of goods and services + transfer payments - tax revenues.
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A factor of production refers to any good or service that is:
A) produced by the government. B) produced in a competitive market. C) used to produce other goods and services. D) produced using scarce economic resources.
To say that a price floor is binding is to say that the price floor a. results in a shortage
b. is set below the equilibrium price. c. causes quantity supplied to exceed quantity demanded. d. All of the above are correct.
In 2007, the government spent over $140 billion on transportation, with nearly ______ percent of this amount being spent on the highway system
a. 5 b. 10 c. 35 d. 80 e. 95
If actual inflation differs from expected inflation, what is the slope of the aggregate supply curve?
a. It is horizontal in the short and long run. b. It is vertical in the short and long run. c. It is vertical in the short run and upward sloping in the long run. d. It is upward sloping in the short run and vertical in the long run.