If the federal budget has an actual budget deficit of $100 billion and a cyclically adjusted budget deficit of $75 billion, then the economy
A) must be at potential real GDP. B) must be above potential real GDP.
C) could be below or above potential real GDP. D) must be below potential real GDP.
D
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Governments should promote education because education contributes to the nation's
A) free markets. B) international trade. C) economic growth potential. D) employment. E) protection of property rights.
The choice on a production possibilities set that is socially preferred or the choice on an individual's budget constraint that is personally preferred displays allocative efficiency
a. True b. False Indicate whether the statement is true or false
Those who favor active policy making argue that all of the following exist EXCEPT
A) perfectly flexible wages and prices.
B) inflation and unemployment are stable in the short run and predictable in the long run.
C) pure competition is not typical.
D) aggregate demand shocks can influence real GDP and unemployment.
In recent years, the consumption of orange juice in the United States has fallen but the price of orange juice has risen. This is because the supply of orange juice has ________ and the demand for orange juice has ________
A) decreased; increased B) decreased; also decreased C) increased; decreased D) increased; also increased