If an economy is $100 billion below potential, the tax rate is 20 percent, and the deficit is $180 billion, the structural deficit is:
A. $200 billion.
B. $20 billion.
C. $180 billion.
D. $160 billion.
Answer: D
You might also like to view...
Net exports is a positive number when a nation ________.
A. simply exports goods and services to other nations B. exports more goods and services than it imports C. exports fewer goods and services than it imports D. increases its exports of goods and services
The process of moving from disequilibrium to equilibrium in labor markets creates special problems because
a. we are all workers threatened by recession b. we cannot spend money we have not earned c. the process is very short d. the process is especially lengthy e. negative shocks create economic expansions
When quantity demanded is greater than quantity supplied,
A. there is a surplus. B. price will fall until it gets back to equilibrium. C. quantity supplied will rise and quantity demanded will fall. D. quantity supplied will fall and quantity demanded will rise.
The successor to GATT in 1995 is
A. the World Trade and Tariff Organization. B. the World Trade Agreement. C. the World Trade Organization. D. the World Agreement on Tariff and Trade.