An effective expansionary fiscal policy will:
A. reduce a cyclical deficit but necessarily increase the actual deficit.
B. reduce the cyclically adjusted deficit.
C. increase the cyclically adjusted deficit but reduce the actual deficit.
D. always result in a balanced actual budget once full employment is achieved.
C. increase the cyclically adjusted deficit but reduce the actual deficit.
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Economic stagnation and recession result in unemployment and poverty
a. True b. False Indicate whether the statement is true or false
If the economy is in long-run equilibrium, the actual unemployment rate is less than the natural unemployment rate
Indicate whether the statement is true or false
The term “fiscal federalism” refers to
A. deficit financing of government programs. B. the power of Congress to tax and to determine how tax revenues are spent. C. transferring money between levels of government (for example, from a state government to a local government). D. the system under which governments ask citizens to vote on major revenue-raising measures (for example, on issues of municipal bonds).
A cash register at a coffee shop should be considered
A. real capital. B. either financial or real capital. C. financial capital. D. none of the choices is correct.