National debt decreases in a given year when a country has
A) a budget deficit.
B) a balanced budget.
C) a budget supplement.
D) a budget surplus.
E) no discretionary fiscal policy.
D
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When the Fed purchases securities on the open market, the securities it buys are
A. common stock of United States corporations. B. corporate bonds. C. securities issued by state governments. D. securities issued by the federal government.
Starting from a long-run equilibrium, a reduction in potential output leads to ________ gap in the short run and to a ________ rate of inflation in the long run.
A. a recessionary; higher B. an expansionary; higher C. an expansionary; lower D. a recessionary; lower
The economic theory that emphasizes the role of difficulties in coordinating economic affairs as a cause of economic fluctuations is known as:
A. Keynesian economics. B. investment cycle theory. C. real business cycle theory. D. technology shock theory.
If demand and supply both decrease
A) the equilibrium quantity definitely will decrease, and the market clearing price definitely will decrease. B) the equilibrium quantity definitely will decrease, and the market clearing price definitely will increase. C) the market clearing price definitely will decrease, but the change in the equilibrium quantity cannot be determined without more information. D) the equilibrium quantity definitely will decrease, but the change in market clearing price cannot be determined without more information.