Which of the following would require reducing government expenditures and increasing tax rates during a recession?
A. An annually balanced budget policy
B. A countercyclical fiscal policy
C. A cyclically balanced budget policy
D. A policy employing built-in stability
A. An annually balanced budget policy
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Refer to Figure 15-17. You are a member of a student government and are asked to recommend a price for the course and you argue: "I think the college should charge a price so that it just breaks even on the course" How much profit (or loss) will the college make on the course if it charges this price?
A) -$2,592,000 B) -$1,080,000 C) $0 D) $450,000
An economic recession in Japan will cause the aggregate demand curve in the United States to shift to the right
a. True b. False Indicate whether the statement is true or false
If a country's purchases of foreign assets exceeds foreign purchases of domestic assets, that country has
a. positive net exports and positive net capital outflows. b. positive net exports and negative net capital outflows. c. negative net exports and positive net capital outflows. d. negative net exports and negative net capital outflows.
An economy with a trade deficit must also have:
A. positive net capital outflows. B. a budget surplus. C. positive net capital inflows. D. a trade deficit.