Suppose that the economy has a structural deficit of $200 billion but is running a budget surplus. It follows that:
A. there is a cyclical deficit.
B. there is no cyclical deficit or surplus.
C. there is a cyclical surplus.
D. the cyclical deficit cannot be determined without more information.
Answer: C
You might also like to view...
Which of the following will NOT shift the aggregate demand curve to the right?
A) a decline in the price level B) an increase in government expenditures C) an increase in investment D) an increase in the money supply
What two factors determine labor productivity? Explain which of the two is more important
What will be an ideal response?
If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700
a. True b. False Indicate whether the statement is true or false
Investing all your money in one company is an example of:
A. risk aversion. B. risk diversification. C. risk pooling. D. None of these statements is true.