Since the wide spread acceptance of the Keynesian view during the 1960s,
A) the federal government has run budget deficits during recessions, but substantial budget surpluses during economic expansions.
B) perpetual budget deficits have been the norm.
C) the federal government has persistently maintained a balanced budget.
D) perpetual budget surpluses have been the norm.
B) perpetual budget deficits have been the norm.
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A nation's monetary base changes when:
a. The central bank reduces the reserve requirement. b. The federal government increases spending. c. Central banks swap currencies with each other. d. Funds cross our imaginary line. e. All of the above.
The marginal-cost curve intersects the average-total-cost curve at the minimum point of the average-total-cost curve
a. True b. False Indicate whether the statement is true or false
On the consumption contract curve
A. supply equals demand of both goods. B. there will be no further voluntary exchange. C. all allocations are Pareto optimal. D. All of these are true.
A fiscal policy action to close a recessionary gap is to:
A. increase taxes. B. increase the marginal propensity to consume. C. decrease transfer payments. D. increase government purchases.