Suppose that we reduce the federal budget deficit (in billions of dollars) in year 1 from 300 to 200 and in year 2 from 200 to 100. During these two years the national debt will
A. fall by 200.
B. stay the same.
C. rise by 200.
D. rise by 300.
D. rise by 300.
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Refer to the above figure. An increase in aggregate demand beyond real Gross Domestic Product (GDP) level Y1 would result in
A) a lower price level and an increases in real GDP. B) higher real GDP but not a higher price level. C) a lower price level but no change in real GDP. D) a higher price level but no change in real GDP.
Most income tax revenues are collected by _____
a. the federal government b. state governments c. county governments d. city governments
Let the quantity of hamburgers be measured along the vertical axis and the quantity of movies be measured along the horizontal axis. If the price of a hamburger is $1.50 and the price of a movie is $6, then the slope of the budget line is
A) -6. B) -4. C) -3. D) -0.25.
The difference between a firm's total revenue and its total opportunity cost is the firm's
A) normal profit. B) economic profit. C) marginal profit. D) marginal revenue.