Starting with a situation where there is a substantial budget deficit, when tax revenues grow faster than federal expenditures, the government will experience:
a. a balanced budget.
b. an increasing national debt.
c. a declining budget surplus.
d. a declining budget deficit.
e. an increasing budget deficit.
d
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Government regulations that increase the cost to the employer of hiring workers will:
A. increase the supply of labor. B. increase the demand for labor. C. decrease the supply of labor. D. decrease the demand for labor.
The cross-price elasticity of demand between Quaker State motor oil and Texaco motor oil is likely to be
A. a positive number. B. a small negative number. C. a large negative number. D. zero.
As a result of the large surpluses following the Clinton Administration, what did President George W. Bush do in 2001, which reduced the surplus?
A) lowered the interest rate to stimulate spending B) increased government spending C) made substantial cuts in taxes D) raised the interest rate to reduce spending
You experiment by offering free warranties for your product in market A but not in market B. Sales in A rise from 240 to 360 units per week while sales in B rise from 410 to 430 . The Difference-in-difference estimate of the effect of the free warranty is:
a. 80 units b. 100 units c. 120 units d. 140 units