Say the economy is at its potential income at $8 trillion and the deficit is $200 billion. The structural deficit:
A. is $200 billion.
B. could be more than $200 billion.
C. could be less than $200 billion.
D. cannot be determined from the given information.
Answer: A
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Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. The current market price is 4 cents per page. With no change in demand and technology, in the long run, the price will
A) remain unchanged. B) rise to 5 cents per page. C) fall to 2 cents per page. D) fall to 1 cent per page.
Economists have noted that businesses of a certain type tend to congregate geographically, attracting workers with skills in those fields. This, in turn, lures more firms seeking employees with those skills
Some examples include commercial banking, software development, and the automobile industry. What mechanism is at work here? Briefly explain how the mechanism works to the advantage of employers and employees.
Refer to above Table 2-2. What are the constant-dollar expenditures in years 1 and 2 at fixed year 2 prices?
A) $14.00, $14.60 B) $7.90, $13.50 C) $18.00, $18.60 D) $12.80, $19.80
________ arises when people realize they will still receive the benefits of a good whether they pay for it or not.
A. The free-rider problem B. Logrolling C. The drop-in-the-bucket problem D. The voting paradox