Which of the following is not correct?
a. A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
b. Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
c. The U.S. debt per-person is large compared with average lifetime income.
d. Current spending may benefit future generations.
c
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The value of intermediate goods is excluded from the measurement of GDP in order to:
A. adjust for inflation. B. index economic activity. C. avoid double counting. D. measure GDP in constant prices.
Which of the following tools is used to compare the income per capita across countries?
A) Purchasing power parity B) The headcount index C) The GDP deflator D) Production possibilities frontier
As a result of the government procurement policy in the U.S.:
a. the domestic consumers are required to pay a higher price than the world price for the domestically produced goods. b. the government wields the sole authority of importing goods from abroad. c. the government wields the sole authority of exporting goods. d. the domestic producers can charge the government a higher price for their products than they charge consumers. e. the government is required to sponsor research and development for the domestic firms.
What was the U.S. inflation rate in 2009?
a. 2% b. -1% c. 0% d. 10%