If you are told that the government had an actual budget deficit of $50 billion, then you would:
A. Know that fiscal policy was expansionary
B. Know that fiscal policy was contractionary
C. Know that fiscal policy was producing a cyclical deficit
D. Not be able to determine the direction of fiscal policy from the information given
D. Not be able to determine the direction of fiscal policy from the information given
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Compensation of losers from opening an economy to international trade is not common because:
A) losers don't lose so much that they would require to be compensated. B) the loss is made up through the availability of a wider array of goods and services. C) it is difficult for governments to carry out such compensation policies. D) the government will have to transfer huge amounts of money to compensate losers.
The principle of vertical equity is satisfied when _____
a. individuals with a greater ability to pay have higher taxes than individuals with a lower ability to pay b. individuals receiving higher benefits from a government program pay higher taxes than those receiving lower benefits c. taxes increase as family size increases d. taxes on higher income individuals are more efficient than the taxes on lower income individuals
Economists believe that production possibilities frontiers
a. never have a bowed shape. b. rarely have a bowed shape. c. often have a bowed shape. d. always have a bowed shape.
Suppose that M is fixed. According to the quantity equation, which of the following would make the price level higher?
a. Y or V rise b. Y or V fall c. Y rises or V falls d. Y falls or V rises