If the cyclically adjusted budget shows a deficit of about $200 billion and the actual budget shows a deficit of about $250 billion over a several-year period, it can be concluded that there is a:
A. contractionary fiscal policy.
B. cyclical deficit.
C. progressive tax system.
D. proportional tax system.
Answer: B
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A permanent change to a much higher price of gasoline would lead us to expect fewer gas guzzlers on the road, ceteris paribus
a. True b. False Indicate whether the statement is true or false
Fred's demand schedule for movie DVDs is as follows: At $60, he would buy 1; at $50, he would buy two; at $30, he would buy 3; and at $20, he would buy 4 . If the price of movie DVDs equals $40, the consumer surplus Fred receives from purchasing movie DVDs would be: a. $20
b. $30. c. $40. d. $110.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the
Three-Sector-Model? a. The GDP Price Index rises, and nominal value of the domestic currency falls. b. The GDP Price Index falls, and nominal value of the domestic currency rises. c. The GDP Price Index rises, and nominal value of the domestic currency remains the same. d. The GDP Price Index falls, and nominal value of the domestic currency falls. e. There is not enough information to determine what happens to these two macroeconomic variables.
The agency directly responsible for monetary policy in the United States is
A. the twelve Federal Reserve Banks. B. the Board of Governors of the Federal Reserve System. C. the Congress of the United States. D. the United States Treasury.