Interest on the government debt is an example of uncontrollable fiscal spending.
Answer the following statement true (T) or false (F)
True
Examples of uncontrollable government spending include interest payments on the national debt and entitlements such as Social Security and Medicare.
You might also like to view...
In the above figure, the equilibrium level of labor is
A) 100 billion hours. B) 150 billion hours. C) 200 billion hours. D) none of the above
A circular flow diagram shows the flows from the goods and resources markets
Indicate whether the statement is true or false
A profit-maximizing firm in a competitive market is able to sell its product for $7 . At its current level of output, the firm's average total cost is $10 . The firm's marginal cost curve crosses its marginal revenue curve at an output level of 9 units. The firm experiences a
a. profit of more than $27. b. profit of exactly $27. c. loss of more than $27. d. loss of exactly $27.
Consider an economy in long-run equilibrium with an inflation rate (?) of 0.08 per year and a natural unemployment rate of 0.05. Suppose Okun's law holds and a one percentage point increase in the unemployment rate reduces real output by 2% of full-employment output. The expectations-augmented Phillips curve is given by ? = ?e - 2.5 (u - 0.05).Consider a two-year disinflation. In the first year, ? = 0.06 and ?e = 0.08. In the second year, ? = 0.04 and ?e = 0.05.(a)In the first year, what is the value of the unemployment rate?(b)In the first year, by what percentage does output fall short of full-employment output?(c)In the second year, what is the value of the unemployment rate?(d)In the second year, by what percentage does output fall short of full-employment
output?(e)What is the sacrifice ratio for this disinflation? What will be an ideal response?