Assume that in Atlantis the actual deficit is $200 billion. If Atlantis were at full employment, the deficit would be $50 billion. The structural deficit in Atlantis is
A. $50 billion.
B. $100 billion.
C. $150 billion.
D. $200 billion.
Answer: A
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Ethanol Mandates Congress has passed laws requiring that a certain percentage of retail gasoline be from ethanol produced from corn. How would this destroy wealth?
The pricing rule MR=MC holds for
a. All firms b. Single product firms c. Multiple product firms d. None of the above
All of these are true, except
a. If production exhibits diseconomies of scope, firm should pair down production line to reduce costs. b. If production exhibits diseconomies of scope, firm should pair up production line to reduce costs. c. If production exhibits economies of scope, firm should pair up production line to reduce costs. d. If production exhibits economies of scope, firm should pair down production line to increase costs.
An administered price is a price
a. set by overall demand and supply. b. established by a seller. c. set by the government. d. determined through collective bargaining.