If the cyclically adjusted deficit as a percentage of GDP is zero in one year and 1 percent of GDP the next year, it can be concluded that:
A. the federal government is borrowing money.
B. fiscal policy is contractionary.
C. fiscal policy is expansionary.
D. the federal government is lending money.
Answer: C
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Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.
a. income gap b. market equilibrium c. law of demand d. price model
Corporate bonds differ from corporate stock in that
a. only bondholders vote on the board of directors b. only bondholders can sit on the board of directors c. bonds carry a stated rate of interest d. bonds are issued as common and preferred e. bondholders are considered the owners of the business
In which zone does the total physical product reach it maximum value?
a. Increasing marginal return b. Negative marginal return c. Diminishing marginal return d. Decreasing total physical product
Studies of the high growth Asian economies confirm the importance of savings and investment in increasing economic growth
Indicate whether the statement is true or false