The cyclically adjusted deficit as a percentage of GDP is 1 percent in year 1. This deficit becomes a surplus of 1 percent of GDP in year 2. It can be concluded from year 1 to year 2 that:
A. fiscal policy was contractionary.
B. the federal government is decreasing taxes.
C. fiscal policy was expansionary.
D. the federal government is increasing spending.
Answer: A
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In 2002, the United States contained around _____ governmental units at all levels
a. ninety thousand b. twelve thousand c. fifty d. five hundred and thirty-five
Selling bonds to finance new government debt leads to an opportunity cost that is
A. Greater than when government debt is financed with taxes. B. The same as financing government debt with taxes. C. Less than when government debt is financed with taxes. D. Dependent on who buys the bonds.
In the U.S., studies have shown that as real incomes have risen, per capita demand for food has been increasing by a much lower percentage
Indicate whether the statement is true or false
What do economists call the study of situations in which people act in ways that do not appear to be economically rational?
a. normative economics b. rational economics c. behavioral economics d. the economics of fairness