When the government's outlays exceed its tax revenue, the national debt
A) shrinks thanks to the budget surplus.
B) grows to finance the budget deficit.
C) shrinks thanks to the budget deficit.
D) grows to finance the budget surplus.
E) does not change because it has nothing to do with government outlays and tax revenue.
B
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Suppose an increase in investment spending results in an increase in equilibrium real GDP and a rise in the equilibrium price level. This implies that the aggregate supply curve for this economy is vertical
a. True b. False Indicate whether the statement is true or false
Two types of bias that tend to cause the CPI to overstate the "true" rate of inflation are the ________ bias and the ________ bias.
A. quality adjustment; price adjustment B. price; quantity C. aggregation; price D. substitution; quality adjustment
Exhibit 2-1 Production possibilities curve data ConsumptionGoods CapitalGoods 10 0 9 1 7 2 4 3 0 4 In Exhibit 2-1, according to the information, the opportunity cost of producing the 3rd unit of capital is:
A. 3 units of consumption goods. B. 4 units of consumption goods. C. 6 units of consumption goods. D. 7 units of consumption goods.