If the federal government runs a budget deficit, and the budget deficit as a percent of GDP is equal to the growth rate of real output, the
a. national debt will decrease as a share of GDP.
b. national debt will remain a constant share of GDP.
c. national debt will increase as a share of GDP.
d. size of the national debt (in dollar value) will decline.
B
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During recessions investment
a. falls by a larger percentage than GDP. b. falls by about the same percentage as GDP. c. falls by a smaller percentage than GDP. d. falls but the percentage change is sometimes much larger and sometimes much smaller.
How will an increase in income affect the budget line for two goods, all other things equal? How does an increase in the price of one good affect the budget line for two goods, all other things equal?
Please provide the best answer for the statement.
Among the following, which is the broadest measure of stock prices in the United States?
A) Dow Jones Index B) FT index C) Nikkei Index D) Term Structure Index E) Standard and Poor's 500 Composite Index
Nonprice rationing devices are required
A. because the price system does not allocate resources efficiently. B. so that prices will go back to equilibrium. C. when there are price floors but not when there are price ceilings. D. to allocate goods when there is a price ceiling.