Suppose the federal budget deficit for the year was $500 billion and the economy was in a recession
If the economy had been at potential GDP, it is estimated that tax revenue would have been $350 billion higher and government spending on transfer payments would have been $200 billion lower. Using these estimates, the cyclically adjusted budget A) deficit was $1,050 billion.
B) deficit was $650 billion.
C) surplus was $50 billion.
D) surplus was $650 billion.
C
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Legally established titles to the ownership, use, and disposal of factors of production are referred to as
A) property rights. B) Coase rights. C) pollution rights. D) emission rights. E) price-setting rights.
Distinguish between "a change in demand" and "a change in quantity demanded." What are the causes of each type of change and how do we illustrate them graphically?
What will be an ideal response?
If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied,
a. there is a surplus and the interest rate is above the equilibrium level. b. there is a surplus and the interest rate is below the equilibrium level. c. there is a shortage and the interest rate is above the equilibrium level. d. there is a shortage and the interest rate is below the equilibrium level.
Danica is running for office. A survey showed that most voters in her district describe themselves as conservative but not extremely conservative. Her opponent is running as a moderate. How should Danica position herself to get the most votes and win the election?
a. as a liberal b. as a moderate c. as slightly more conservative than her opponent d. as slightly more liberal than her opponent