In Year 1, the actual budget deficit was $200 billion and the cyclically-adjusted deficit was $150 billion. In Year 2, the actual budget deficit was $225 billion and the cyclically-adjusted deficit was $175 billion. It can be concluded that fiscal policy from Year 1 to Year 2 became more:
A. Proportional
B. Progressive
C. Contractionary
D. Expansionary
D. Expansionary
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If a French company sells 1000 gallons of Perrier to a U.S. company at 5 euros per gallon, and uses the money to buy stock in a Spanish cork company, how does this affect the French balance of payments accounts?
A) Decrease in financial account; increase in merchandise trade B) Decrease in merchandise trade; increase in financial account C) Decrease in net investment income from abroad; increase in financial account D) Decrease in merchandise trade; increase in net income from abroad
An excess supply will cause price to fall
Indicate whether the statement is true or false
One of the reasons that President Bush advocated for the 2003 tax reform was
a. to create a ‘stimulus package' to counter a deepening of the recessionary phase ofthe business cycle b. to stem the growing rate of inflation c. to provide the revenues to fight the war on terrorism d. to curb the outflow of revenue to foreign countries by reducing trade imbalances e. to reduce the government deficit
Which of the following conditions is characteristic of a monopolistically competitive firm in long-run equilibrium?
a. P > demand and P = MR b. ATC > demand and MR = MC c. P > MC and demand = ATC d. P < ATC and demand > MR