Refer to the diagram, where T is tax revenues and G is government expenditures. All figures are in billions of dollars. If the full-employment and actual GDP are each $400 billion, government can balance its cyclically adjusted budget by:
A. increasing T by $40 billion.
B. reducing G by $20 billion.
C. reducing T by $20 billion.
D. increasing T by $10 billion and reducing G by $20 billion.
B. reducing G by $20 billion.
You might also like to view...
If the implied exchange rate between Big Mac prices in the United States and the Philippines is 68 pesos per dollar, but the actual exchange rate between the United States and the Philippines is 43 pesos per dollar, which of the following would you
expect to see? A) a depreciation of the dollar B) an increase in the demand for dollars C) an appreciation of the Philippine pesos D) a decrease in the demand for dollars
The narrow definition of the money supply includes only currency held by the nonbanking public
a. True b. False Indicate whether the statement is true or false
Since only a few firms dominate the oligopoly market, cutthroat competition does not exist
a. True b. False Indicate whether the statement is true or false
Speculation during periods of inflation can result in:
A. People buying resources for resale later rather than using the resources for current production. B. A movement inside the production-possibilities curve. C. People buying gold, silver, jewelry, etc., instead of capital for production. D. People saving less of their disposable income. E. All of the above.