When real GDP is ________ potential output, ________ fiscal policy designed to move real GDP to the economy's potential output level will tend to make a federal budget deficit larger
a. above, expansionary
b. below, contractionary
c. above, contractionary
d. below, expansionary
d
You might also like to view...
If an indifference map for a consumer is made up of straight, negatively sloped lines, the marginal rate of substitution ________ as more of the good on the horizontal axis is consumed
A) does not diminish B) diminishes C) increases D) More information is needed to answer the question.
In the presence of asymmetric information, a contingent contract
A) achieves production efficiency. B) can lead to opportunistic behavior on the part of the agent. C) is impossible to write. D) will result in the principal earning all of the profit.
Which of these is not a result of sugar quotas imposed by the United States?
A. Domestic sugar prices decreased. B. U.S. sugarcane and beet farmers have benefitted. C. Some U.S. soda and candy producers have moved their plants outside of the United States. D. The number of lost domestic jobs in sugar-dependent industries is greater than those saved in the sugar industry.
Scarcity implies that people must
A) be irrational. B) be selfish. C) make choices. D) not be selfish.