A federal budget deficit places a genuine burden on future generations when the
a. crowding-out effect is stronger than the crowding-in effect.
b. crowding-in effect is stronger than the crowding-out effect.
c. crowding-out and crowding-in effects work in opposite directions.
d. crowding-out and crowding-in effects operate in the same direction.
a
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Opportunity cost is best defined as the value of
A. all of the other possible options that the decision maker could have chosen. B. the alternative which the decision maker would choose if more resources were available. C. what is gained from the alternative which is chosen. D. resources that are given up to attain the alternative that is chosen. E. the next best alternative that the decision forces one to give up.
A decrease in a fixed exchange rate from $1.75 per pound to $1.60 per pound is called a(n) ________ of the pound
A) devaluation B) depreciation C) revaluation D) appreciation
Changes in the natural rate of unemployment are related to changes in the composition of the labor force and to the changes in the productivity of the economy over time
Indicate whether the statement is true or false