Suppose the federal budget surplus for the year was $350 billion and the economy was in an economic expansion
If the economy had been at potential GDP, it is estimated that tax revenue would have been $140 billion lower and government spending on transfer payments would have been $50 billion higher. Using these estimates, the cyclically adjusted budget A) deficit was $440 billion.
B) deficit was $260 billion.
C) surplus was $160 billion.
D) surplus was $540 billion.
C
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A firm's fundamental goal is
A) different for each firm. B) to make a quality product. C) to maximize profit. D) to gain market share. E) to decrease its employment of workers in order to cut its costs.
When a pharmaceutical company advertises that its allergy medication is clinically proven to alleviate hay fever symptoms, the pharmaceutical company is engaging in
A) informational advertising. B) trademark protection. C) persuasive advertising. D) direct marketing.
One could argue that GDP is not a good measure of the standard of living in a nation because it ________.
A. excludes payments for pollution control equipment B. does not account for the size of the population C. does not account for the cost of police protection D. includes the cost of health insurance
Refer to Figure 2.1. If you choose to produce only agricultural products, what is the maximum quantity you can produce per year?
A. 200 tons B. 400 tons C. 600 tons D. > 600 tons