In order to borrow money to finance a deficit, the federal government
A. sells government securities.
B. must raise taxes.
C. negotiates with large banks.
D. cuts spending.
A. sells government securities.
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"Privatization of government owned industries is likely to increase unemployment in the short run" is a ________ statement about ________ policy.
A. normative; monetary B. normative; structural C. positive; fiscal D. positive; structural
Regarding open economies, economists tend to find evidence that
A) the more closed an economy is, the higher the rate of growth the economy will experience. B) trade tariffs tend to improve economic growth. C) free trade encourages a more rapid spread of technology, and hence increases economic growth. D) open economies tend to have access to smaller markets than do closed economies.
The equilibrium price level
a. determines by how much the AD curve shifts b. is inversely related to the nominal wage rate c. is influenced by the pricing behavior of all the firms in the economy d. is unaffected by changes in resource costs e. is the same thing as the interest rate
Which of the following is an intermediate good?
A. Tomatoes sold in the grocery store that you use to make salsa. B. Tomatoes grown in your garden that you use to make salsa. C. Tomatoes sold to a factory and used in the production of spaghetti sauce. D. Tomatoes you buy at a local farmer's stand that you use to make salsa.