Answer the following statements true (T) or false (F)
1. The key to assessing whether fiscal policy is expansionary or not is to observe the change in the cyclically-adjusted budget balance.
2. If the cyclically-adjusted budget has a zero deficit but the actual budget has a $100 billion deficit, then that means that the government is pursuing an expansionary fiscal policy.
3. The actual and cyclically-adjusted budgets will be equal when the economy is at full employment.
4. If the cyclically-adjusted budget deficit goes from 2% to 1% of GDP, then it indicates that fiscal policy has turned more contractionary.
1. True
2. False
3. True
4. True
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One of the obstacles to efficiency is monopoly
Indicate whether the statement is true or false
Economic expansions in Europe and China would cause
a. the U.S. price level and real GDP to rise. b. the U.S. price level and real GDP to fall. c. the U.S. price level to rise and real GDP to fall. d. the U.S. price level to fall and real GDP to rise.
Here are the costs of going to college: tuition $5,000; books $200; housing $1,000; food $1,000; lost income from work $10,000. Studying and work are equally desirable in your mind. Suppose that you could work part-time and make $5,000 at a job you would volunteer to do. You live on campus instead of at home. What is the cost of going to school?
A. $7,200 B. $11,200 C. $5,200 D. $16,200
What is the main purpose (function) of bond rating services?
What will be an ideal response?