A budget surplus means that:
a. Government revenues are greater than expenditures in a given year
b. Government expenditures are greater than revenues in a given year
c. Government revenues are greater than expenditures throughout time
d. Government expenditures are falling and government revenues are rising
a. Government revenues are greater than expenditures in a given year
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The purchasing power parity method of comparing income levels across countries
a. calculates the cost of purchasing a common bundle of goods in each country and then uses this price index to convert each country's income to a common currency. b. uses the exchange rate to convert the income level of each country to a common currency. c. uses the prime interest rate in each country to convert the income level of each country to a common currency. d. calculates the ratio of imports relative to exports in each country and then uses this ratio to convert each country's income to a common currency.
When the government deregulates a product or service, what happens to it?
(A) Some government regulations over the industry are eliminated. (B) Government control over the industry is stopped. (C) The product or service is available to more people. (D) The product or service becomes cheaper.
If the marginal propensity to consume is .9, then the marginal propensity to save must be:
A. 1. B. .1. C. 1.1. D. .9.
Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. Suppose the economy is initially at Point A. An expansionary fiscal policy moves the economy to Point ________ in the short run.
A. E B. B C. C D. D