If the cyclically adjusted budget deficit increases from $200 billion to $250 billion and GDP remains constant over the two years:
A. fiscal policy is expansionary.
B. fiscal policy is neutral.
C. fiscal policy is contractionary.
D. the tax system is progressive.
Answer: A
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Draw a graph showing the effect of an increase in the saving rate on the production function.
What will be an ideal response?
If ________ enters into an exchange with another party who has ________ information, there is asymmetric information and adverse selection.
A. only a seller, but not a buyer; more B. only a buyer, but not a seller; more C. a buyer or seller; an equal amount of D. a buyer or seller; more
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