A decrease in real GDP would affect the U.S. economy by:
A. cutting tax revenues and raising government expenditures.
B. cutting government expenditures and raising tax revenues.
C. raising both tax revenues and government expenditures.
D. cutting both government expenditures and tax revenues.
Answer: A
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A firm might be tempted to cheat on a collusive price-fixing agreement by setting a ________ price and producing ________ than agreed upon
A) lower; more B) lower; less C) higher; more D) higher; less
If the GDP deflator is less than 100, then for that year nominal GDP ________ real GDP
A) equals B) is less than C) is greater than D) may be greater than or less than
The slope of a country's production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the specific factors model is equal to ________ and it ________ as more cloth is produced
A) -MPLF/MPLC; becomes steeper B) -MPLF/MPLC; becomes flatter C) -MPLF/MPLC; is constant D) -MPLC/MPLF; becomes steeper E) -MPLC/MPLF; is constant
Demand deposits are: a. assets of banks, liabilities of depositors. b. liabilities of banks, assets of depositors. c. assets of banks and their depositors
d. liabilities of banks and their depositors.