A federal budget deficit
a. occurs when government expenditures exceed tax revenues.
b. occurs when monetary policy works in the opposite direction of fiscal policy.
c. occurs when tax revenues exceed government expenditures.
d. occurs when transfer payments exceed tax revenues.
e. will always result when Congress and the president cannot agree on expenditures.
Answer: a. occurs when government expenditures exceed tax revenues.
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A typical consumer of health care in the United States
A) does not pay the full price of his or her health care. B) does not pay any of the price of his or her health care. C) pays more than the full price of his or her health care. D) pays the full price of his or her health care.
Refer to Figure 14.3. Suppose the economy is initially at long-run equilibrium and the economy experiences a demand shock such as a stock market crash
Other things equal, following the effect of the stock market crash, the economy will ultimately end up at a new long-run equilibrium ________ the initial long-run equilibrium. A) that is the same as B) with a higher real GDP and a higher inflation rate than C) with a higher real GDP than, and the same inflation rate as D) with a higher inflation rate than, and the same real GDP as
Which of the following is NOT a determinant of the price elasticity of demand?
A) the availability of potential substitutes B) the share of the budget spent on the item C) the time the consumer has to adjust to the price change D) the cost to produce the product
Regulatory commissions may focus on establishing a "fair-return" price to be charged by a monopolist. Under this policy, the monopolist would earn:
a. positive economic profits. b. zero economic profits. c. negative economic profits. d. monopoly profits.