When governments run budget surpluses, ceteris paribus, public saving as well as national saving decreases
a. True
b. False
Indicate whether the statement is true or false
False
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Unlike an internally held public debt, an externally held public debt
a. cannot pass the debt burden on to future generations b. can pass the debt burden on to future generations c. expires upon maturity d. cannot be reduced because foreigners hold the debt e. causes crowding out
Combining various goods and services into a convenient grouping is called
a. conglomeration. b. blending. c. congregation. d. agglomeration. e. aggregation.
Figure 10-18
Given the shift of the aggregate demand curve from AD1 to AD2 in , the real GDP and price level (CPI) in long-run equilibrium will be
a.
$10 billion and 200.
b.
$4 billion and 150.
c.
$10 billion and 150.
d.
$10 billion and 100.
The government is considering a policy to reduce air pollution by restricting the use of “dirty” fuels by factories. In deciding whether to implement the policy, how, if at all, will the likely effects of this policy impact real GDP?
What will be an ideal response?