During recessions, automatic stabilizers tend to make the government's budget
a. move toward deficit.
b. move toward surplus.
c. move toward balance.
d. not necessarily move the budget in any particular direction.
a
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Suppose, in 2008, the federal debt was $5 trillion. That year, the United States ran a deficit of $455 billion. During the course of the year, the inflation rate was 3.8%. How much is the "inflation tax"?
What will be an ideal response?
You've read about a soldier who, in the heat of battle, willingly sacrifices his or her life to save the lives of fellow soldiers. How can you best explain such a sacrifice in terms of utility analysis? a. The soldier makes an interpersonal comparison of utility and decides that the life of the soldier saved is less valuable than his own
b. The soldier makes an interpersonal comparison of utility and decides that the probability of getting killed is less than the probability of not getting killed, but waswrong. c. The soldier makes an interpersonal comparison of utility and decides that the probability of getting killed is less than the probability of not getting killed, and wasright, but the probability of getting killed was still greater than zero. d. In the heat of battle, the soldier may place an incredibly high value on saving a comrade's life, even higher than his own. e. In the heat of battle, a soldier doesn't think rationally.
A high demand for a company's stock is an indication that
a. the company is in need of funds. b. the company has recently sold a large quantity of bonds. c. people are optimistic about the company's future. d. people are pessimistic about the company's future.
The inflation rate is:
A. the percentage change in the overall price level. B. is not something that can be accurately measured with the CPI. C. the central concept in microeconomics. D. a measure of the rate of increase in the cost of imported goods.