The cyclically adjusted budget refers to:
A. the inflationary impact that the automatic stabilizers have in a full-employment economy.
B. that portion of a full-employment GDP that is not consumed in the year it is produced.
C. the size of the federal government's budgetary surplus or deficit when the economy is
operating at full employment.
D. the number of workers who are underemployed when the level of unemployment is 4 to 5
percent.
C. the size of the federal government's budgetary surplus or deficit when the economy is
operating at full employment.
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Suppose that the federal budget is balanced when GDP is at potential GDP. If equilibrium GDP falls below potential,
A) this will result in a current budget deficit. B) government transfer payments will be rising and tax receipts will be falling. C) the cyclically adjusted budget will be balanced. D) All of the above are correct.
What is the national income identity for a closed economy?
What will be an ideal response?
Which of the following macroeconomic variables would likely be affected by a fiscal policy?
a. The nominal interest rate b. The exchange rate c. The discount rate d. Employment e. Money supply
The underground economy exists for all of the following reasons EXCEPT The
a) avoidance of government regulation b) production of illegal goods c) desire to maintain accurate records of economic transactions d) avoidance of taxes