A nation can forecast the following year's deficit without knowing how fast GDP will grow.
Answer the following statement true (T) or false (F)
False
Because of automatic stabilizers, the revenue and expenses of the government are sensitive to the budget cycle and the economic growth rate.
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Our "dual" banking system refers to
A) commercial banks and thrifts. B) federal and state chartering and supervision of commercial banks. C) stockholder-ownership and depositor-ownership of depository institutions. D) banks that are members and non-members of the Fed.
Opportunity cost usually
a. cannot be measured b. applies to labor but not to capital c. is involved in calculating economic profit d. is greater than the cash payment made to a resource e. is less than the cash payment made to a resource
Growth in employment can result
a. from an increase in labor supply only b. from an increase in labor demand only c. from changes in technology only d. from an increase in either labor supply or labor demand e. only when the wage rate falls
Which of the following is a correct characterization of socialism?
a. Central planning is used to answer the basic economic questions. b. Government ownership of many resources and centralized decisionmaking answers the basic economic questions. c. Markets are used exclusively to answer the basic economic questions. d. Tradition answers the basic economic questions.