During a recession, higher welfare outlays:
a. increase the size of the budget deficit even if the government does not undertake discretionary fiscal policy.
b. decrease the size of the budget deficit regardless of the government's discretionary fiscal policy
c. increase the size of the budget deficit only if the government undertakes discretionary fiscal policy.
d. decrease the size of the budget deficit only if the government undertakes discretionary fiscal policy.
e. have the same effect on the budget deficit as they do in times of expansion.
a
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If a perfectly competitive firm faces a market price of $3 per unit, and it decides to produce 30,000 units, the market price will likely:
A. increase. B. decrease. C. stay the same. D. increase initially and then decrease.
The reserve demand schedule is drawn on a graph that has the quantity of reserves on the horizontal axis and
A. the price level is on the vertical axis. B. the federal funds rate is on the vertical axis. C. the price of bonds is on the vertical axis. D. income is on the vertical axis.
While waiting in line to buy two tacos at 80 cents each and a medium drink for 90 cents, Kayla notices that the restaurant has a value meal containing three tacos and a medium drink all for $3 . For Kayla, the marginal cost of the third taco would be
a. zero. b. 50 cents. c. 80 cents. d. $1.
When the absolute price elasticity of demand is greater than 1, demand is
A) elastic. B) unit-elastic. C) inelastic. D) undetermined without more information.