Why were the U.S. government budget deficits of the 1980s and early 1990s so unusual from a historical point of view?
A) It was the first time the U.S. government had ever run deficits.
B) In the past, deficits were usually that large only in wartime.
C) It was the first time that deficits were accompanied by very high rates of inflation.
D) It was the first time that deficits diverted funds from other productive uses, such as investment in modern equipment.
B
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Production efficiency occurs
A) anywhere inside or on the production possibilities frontier. B) when the total cost of production is minimized. C) at all points on the production possibilities frontier. D) at only one point on the production possibilities frontier. E) at all points inside the production possibilities frontier.
What two variables are determined in an aggregate supply-aggregate demand figure? Is the slope of the short-run aggregate supply curve positive or negative? Is the slope of the aggregate demand curve positive or negative?
What will be an ideal response?
An important factor that contributes to labor productivity growth is:
A) growth in the capital stock. B) technological change. C) the standard of living. D) A and B only E) A, B, and C are correct.
Refer to Figure 9.5. The firm is producing Q units. Which area represents avoidable cost?
A. ABCDE
B. EDGF
C. EDCHF
D. CHGD