Answer the following statements true (T) or false (F)
1) Permanent tax reductions are more likely to be expansionary than temporary tax reductions.
2) As measured by the cyclically adjusted budget, the U.S. government engaged in a
contractionary fiscal policy in 2005 and 2006.
3) Financing wartime expenditures by increasing internally held public debt permits a nation to
defer a part of the economic cost of war.
4) It is more meaningful economically to measure the public debt relative to the GDP than to
measure it in absolute terms.
1) T
2) F
3) F
4) T
You might also like to view...
The more staggered are labor contracts,
A) the more rapidly the economy will adjust to changes in aggregate demand. B) the less rapidly the economy will adjust to changes in aggregate demand. C) the greater the inflationary effects of a given change in money growth in the medium run. D) the less inflationary effects of a given change in money growth in the medium run.
Fixed investment is
A. capital purchase by businesses of newly produced durables. B. the change in stocks of finished goods. C. the change in the stocks of goods in process. D. purchases by consumers of newly produced consumer durables.
Suppose that real GDP for 2017 was $10,000 billion and real GDP for 2018 was $11,000 billion. What is the rate of growth of real GDP between 2017 and 2018?
A) 1% B) 2% C) 5% D) 10%
Economists use the concept of ________ to measure how one economic variable, such as quantity, responds to a change in another economic variable, such as price
A) slope B) efficiency C) relativity D) elasticity