Suppose that the federal budget is balanced when GDP is at potential GDP. If equilibrium GDP falls below potential
A) government transfer payments will be rising and tax receipts will be falling.
B) this will result in a current budget deficit.
C) the cyclically adjusted budget will be balanced.
D) All of the above are correct.
D
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Georgine buys more sweaters when her income increases. For Georgine, sweaters are
A) a substitute. B) a complement. C) an inferior good. D) a normal good.
If the price level rises and the money wage rate remains constant, what happens to the quantity of real GDP supplied? Along which aggregate supply curve does the economy move?
What will be an ideal response?
The Balance of Payments always balances
Indicate whether the statement is true or false
Exhibit 10-1A perfectly competitive producer has the following short-run average cost curve and marginal cost curve:SR AC = 2Q + 3MC = 4Q + 3where costs are measured in dollars and Q represents the firm's output in units. If the market price of wangdoodles is $15 each, the profit-maximizing producer whose short-run cost curves are given in Exhibi should produce ____ wangdoodles.
A. 0 B. 3 C. 6 D. 15