Suppose a country has been running a persistent government budget deficit. If the deficit is reduced, but remains positive...
What will be an ideal response?
government debt will increase
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As a general rule, consumers have
A. limited income. B. unlimited desires for goods. C. many choices of goods facing them. D. All of the responses are correct.
The crowding-out effect indicates that budget deficits
a. will stimulate aggregate demand and, therefore, exert a strong impact on output and employment. b. will lead to additional borrowing and higher interest rates that will reduce the level of private spending. c. are highly appropriate when the threat of inflation is present. d. are highly appropriate when the threat of recession is present.
Which of the following formulas would show price elasticity of supply?
a. 20% + +5% = +25 b. 20% – +5% = +15 c. 20% × +5% = +100 d. +20% ¸ +5% = +4
For production to be at the ________ level of output, marginal benefit must equal social cost.
A. loss-minimizing B. profit-maximizing C. efficient D. shut-down