The cyclically adjusted budget tells us:
A. that in a full-employment economy, the federal budget should be in balance.
B. that tax revenues should vary inversely with GDP.
C. what the size of the federal budget deficit or surplus would be if the economy was at full
employment.
D. the actual budget deficit or surplus realized in any given year.
C. what the size of the federal budget deficit or surplus would be if the economy was at full
employment.
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Corruption
A) curtails economic growth. B) is eliminated by foreign direct investment. C) raises the rate of growth as bribes enhance income. D) acts as a magnet for foreign direct investment.
During the delivery period,
A) the futures price exceeds the price in the cash market. B) the price in the cash market exceeds the futures price. C) the futures price and the price in the cash market are equal. D) there is no discernible relationship between the futures price and the price in the cash market.
The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
An industry spy comes to firm B and offers to pay B in exchange for B's certain and enforceable promise to not invest. How much must the spy pay B?
A. At least $35 million B. At least $50 million C. $0 D. At least $15 million