Without a change in discretionary fiscal policy, we would expect that if the economy goes into recession, then the:
A. Cyclically-adjusted deficit and the actual deficit would both increase
B. Cyclically-adjusted deficit and the actual deficit would both decrease
C. Cyclically-adjusted deficit would stay the same while the actual deficit would increase
D. Cyclically-adjusted deficit would increase while the actual deficit would stay the same
A. Cyclically-adjusted deficit and the actual deficit would both increase
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Measured in BTUs per dollar of real GDP, energy consumption fell by only 5 percent between 1970 and 1975, but had fallen by almost 30 percent by 1990 . These figures illustrate the fact that
a. energy demand does not respond to price changes in the short run. b. energy demand does not respond to price changes in the long run. c. energy demand is more elastic in the short run than in the long run. d. energy demand is more elastic in the long run than in the short run.
To economists, investment means buying stocks and bonds.
Answer the following statement true (T) or false (F)
The effect on the market for heating oil of a leftward shift of supply would be
A. a shortage of heating oil. B. a surplus of heating oil. C. a decrease in the quantity of heating oil sold and in its price. D. an increase in the price of heating oil and a decrease in the quantity sold.
Gains from trade can only occur when
A) marginal rates of substitutions differ across people. B) marginal rates of substitution are equal across people. C) indifference curves are convex. D) people find themselves on the contract curve.