The automatic budget surpluses and budget deficits that occur in the federal budget over the business cycle
A) destabilize the economy.
B) stabilize the economy.
C) decrease potential GDP.
D) increase potential GDP.
Answer: B
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Demand in a perfectly competitive market is Q = 100 - P. Supply in that market is Q = P - 10. What is the market equilibrium price and quantity? Given that price and quantity, how much consumer surplus, producer surplus, and deadweight loss is there? If the government imposes a $10 per unit sales tax, what is the new equilibrium price and quantity? Once the government imposes the tax, how consumer surplus, producer surplus, and dead-weight loss is there?
What will be an ideal response?
In the table above, the size of the labor force is
A) 80 million. B) 46 million. C) 42 million. D) 40 million. E) 34 million.
If the actual capital-labor ratio is above the steady-state capital labor ratio, growth from convergence will be ________, and the economy will grow ________ than it will along a balanced growth path
A) negative; slower B) negative; faster C) positive; slower D) positive; faster
A surplus can exist in the market only if there is:
a. a non binding price floor. b. a binding price floor. c. a binding price ceiling. d. a non binding price ceiling.