Deficits and Surpluses
What will be an ideal response?
First, we need to define what we mean by the government budget surplus or deficit. This can be calculated by subtracting total government outlays from total government tax revenues. A positive result indicates a surplus; a negative one, a deficit. Budget Surplus or Deficit T Government Outlays T ( () () + ? = ? = ? G T+ R)
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Suppose the U.S. dollar depreciates, and there is no change in monetary policy. Which of the following is a correct description of the short-run consequences?
A) output, inflation, and the real interest rate have all increased B) output, inflation, and the real interest rate have returned to their original values C) output and inflation are higher, while the real interest rate has fallen D) output and inflation have returned to their original values, while the real interest rate is increased
Explain why state governments may charge a fee for beach access to address the commons problem
What will be an ideal response?
When the supply of a good increases and its demand decreases by the same amount: a. Price will change in the same direction as the shift in supply
b. Price will change in the same direction as the shift in demand. c. Quantity exchanged will change in the same direction as the shift in supply. d. Quantity exchanged will change in the same direction as the shift in demand.
Studies have shown links between calcium consumption and a reduction in osteoporosis. How does this affect the market for calcium?
A) The calcium supply curve shifts to the right because of a change in tastes in favor of calcium. B) The calcium demand curve shifts to the right because of a change in tastes in favor of calcium. C) The calcium demand curve shifts to the left because this new information will increase the price of calcium. D) The calcium supply curve shifts to the left because this new information will increase the price of calcium.