The cyclically adjusted budget deficit or surplus measures what the deficit or surplus would be if the economy was
A) in a recession.
B) in an expansion.
C) at potential GDP.
D) at potential tax revenue.
Answer: C
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According to the U.S. Bureau of Economic Analysis, by the third quarter of 2014, foreign investors had accumulated ________ of U.S. assets.
a. $30.8 billion b. $30.8 trillion c. $24.6 trillion d. $2.46 trillion
Which of the following factors important in determining our standard of living are not reflected in the Gross Domestic Product?
A. The value of leisure, the quality of our environment, improvements in products quality. B. The value of our imports and exports, the value of leisure. C. The value of our imports, the improvements in product quality.
In order to increase the confidence of investors, the new President of Montesia provides lucrative tax incentives to its investors. This will result in a(n):
a. increase in the level of planned investment spending of firms b. decrease in the level of investment spending that is financed through borrowed money. c. decrease in the level of production of firms. d. increase in the average price level of the economy.
The own price elasticity of demand for apples is ?1.2. If the price of apples falls by 5 percent, what will happen to the quantity of apples demanded?
A. It will increase 6 percent. B. It will fall 4.3 percent. C. It will increase 5 percent. D. It will increase 4.2 percent.