The government budget constraint implies that
A) government borrowings = government spending+ transfers - taxes and user charges.
B) government borrowings = taxes and user charges + government spending - transfers
C) government spending = transfers - taxes and user charges - government borrowing.
D) government spending = government borrowing - transfers - taxes and user charges
Answer: A
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In recent years, redistribution has been the fastest growing category of federal government outlays
a. True b. False
Prior to the industrial revolution
A. economic growth was only 1 percent per year. B. life remained the same from one generation to the next. C. most workers were craftsmen, such as millers, carpenters, and tailors. D. there were very few rich people, but there were very few poor people.
Suppose workers become pessimistic about their future employment, which causes them to save more and spend less. If the economy is on the intermediate range of the aggregate supply curve, then:
A. both real GDP and the price level will fall. B. real GDP will fall and the price level will rise. C. real GDP will rise and the price level will fall. D. both real GDP and the price level will rise.
A single supplier of a good or service for which there is no close substitute is referred to as a(n)
A. strategic competitor. B. oligopoly. C. monopoly. D. monopolistic competitor.