The structural deficit is the deficit that
a. is composed by of nondiscretionary spending by the federal government.
b. results from the economy being below its natural rate of output.
c. exists when output is at its natural rate of output.
d. results from temporary tax cuts.
e. all of the above
C
You might also like to view...
Why are economists less worried about industry concentration than they once were?
What will be an ideal response?
During the Great Depression, economists first began studying the relationship between
A) changes in nominal GDP and changes in real GDP. B) changes in aggregate expenditures and changes in GDP. C) changes in stock prices and changes in price controls. D) changes in GDP and changes in interest rates.
Suppose the world economy is divided into two halves. In Region A, all economies experience a decrease in desired saving, while desired saving is unchanged in Region B
If there is open trade and perfect capital mobility across the two regions, which of the following is true? A) Actual saving in Region B has increased. B) Actual investment in Region A has increased. C) Region A's imports from Region B have decreased. D) all of the above E) none of the above
An industry is said to be a natural monopoly when:
A. legal barriers limit entry into the market. B. diseconomies of scale are present in the market. C. the market demand for the product supplied by a firm is inelastic. D. long-run average cost continues to decline as the quantity of output increases.