The federal government's major outlay in its budget is_______ and its major source of revenue is _______
A. debt interest; sales of government bonds
B. expenditure on goods and services; taxes on goods and services
C. Social Security and other benefits; personal income taxes
D. subsidies to farmers; corporate taxes
C Social Security payments are the major part of the govern-ment's transfer payments, which is the largest outlay item. On the revenue side, personal income taxes slightly exceed Social Security taxes in revenue collected.
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The actual budget deficit is equal to the
A) structural deficit minus the cyclical deficit. B) structural deficit plus the cyclical deficit. C) cyclical deficit minus the structural deficit. D) cyclical deficit. E) structural deficit.
If the U.S. price level decreased relative to price levels in foreign countries, what would be the impact on domestic aggregate supply and aggregate demand curves?
a. the aggregate supply curve would shift outward and the aggregate demand curve would remain unchanged b. the aggregate supply curve would shift inward and the aggregate demand curve would remain unchanged c. the aggregate demand curve would shift outward and the aggregate supply curve would remain unchanged d. the aggregate demand curve would shift inward and the aggregate supply curve would remain unchanged e. the domestic aggregate demand and supply curves would remain unchanged
De Soto's The Other Path encourages poor countries to use their development policies to do all of the following except
A. Reduce regulations. B. Encourage entrepreneurship. C. Encourage population growth. D. Enforce laws to safeguard property.
In Figure 35.1, if rents are controlled so that they may go no higher than Rmax, the amount that renters will want will be 
Figure 35.1
A. Q". B. Q'. C. Q*. D. 0.