A significant increase in the government budget deficit is likely to:
a) Reduce injections into the economy
b) Reduce national income
c) Move the economy away from full employment
d) Boost aggregate demand
Answer: d) Boost aggregate deman
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The US government sets the poverty line equal to approximately
a. three times the cost of providing subsidized housing. b. three times the cost of providing an adequate diet. c. the minimum wage for a single person working 40 hours per week and 50 weeks per year. d. the cost of providing food, shelter, and health care expenses for a family of four.
A decline in the quantity of real output demanded along the aggregate demand curve is a result of a(n):
a. Decrease in the price level b. Decrease in the level of income c. Increase in the level of income d. Increase in the price level
An example of foreign aid that has improved economic conditions is ________
A) funding of public health programs B) funding of the U.S. Interstate Highway System C) programs to reduce foreign debt D) the Napoleonic code
In a "game," strategies are
A) the reactions of firms to the changes in the economy. B) the laws regulating the industry. C) the plans made by the participants. D) the potential returns the participants may get.