Which of the following is an argument against a balanced government budget?
a. A government may decide that by accumulating large budget surpluses, it can make crucial long-term investments in human capital and physical infrastructure that will build the long-term productivity of a country.
b. A government may decide that by running large budget deficits, it can make crucial long-term investments in human capital and physical infrastructure that will build the long-term productivity of a country.
c. A government may decide that by running small budget deficits, it can make crucial long-term investments in human capital and physical infrastructure that will build the long-term productivity of a country.
d. A government may decide that by accumulating small budget surpluses, it can make crucial long-term investments in human capital and physical infrastructure that will build the long-term productivity of a country.
b. A government may decide that by running large budget deficits, it can make crucial long-term investments in human capital and physical infrastructure that will build the long-term productivity of a country.
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Ceteris paribus, which of the following would cause the aggregate demand curve to shift to the right?
a. higher personal taxes b. a rise in consumer confidence c. reduced stock market wealth d. a reduction in transfer payments
How does moral hazard matter in the market for insurance?
If the unemployment rate fell from 8 percent to 6 percent, the cyclical unemployment rate
A. Went up. B. Stayed the same. C. Fell by less than 2%. D. Fell by 2%. E. Fell by more than 2%.
For an industry in which average costs continue to decline as output rises, what would you expect the minimum efficient scale to be? Explain your answer
What will be an ideal response?