When an economy's government goes from running a budget deficit to running a budget surplus, the economy's long-run growth prospects are improved
a. True
b. False
Indicate whether the statement is true or false
True
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A government's budget deficit is equal to
A) the change in the value of bonds issued plus the change in the money supply. B) the change in the value of bonds issued minus the change in the money supply. C) the change in the money supply minus the change in the value of bonds issued. D) either the change in the value of bonds issued or the change in the money supply.
In the United States, most workers
a. work for government of some sort. b. produce raw materials for manufacturing. c. work in agriculture and farming. d. produce services rather than goods.
John only had $40 to spend and couldn't decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision?
A. $40 B. New pair of jeans C. Trip to amusement park D. No opportunity cost was involved.
The idea that nations in a currency union will have fewer trade barriers or other frictions may have the dual effect of:
A) increased integration and more risk of debt default. B) increased political harmony and less risk of asymmetric shocks. C) economies of scale and specialization as well as higher risk of asymmetric shocks. D) economic growth and an increase in environmental degradation