Suppose that the federal government had a budget deficit of $80 billion in year 1 and $10 billion in year 2, but it had budget surpluses of $140 billion in year 3 and $20 billion in year 4. Also assume that the government uses any budget surpluses to pay down the public debt. At the end of these four years, the Federal government's public debt would have
A) increased by $250 billion.
B) decreased by $70 billion.
C) decreased by $62.5 billion.
D) increased by $70 billion.
B
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The Phillips curve shows
A) a positive relationship in the long run between the rate of inflation and the rate of unemployment. B) a negative relationship between the inflation rate and the unemployment rate, at least in the short run. C) a positive relationship between contractionary monetary policy and higher price levels. D) a positive relationship between price stability and constant, small-increment changes in the fiscal policy on the part of the Fed.
Minimum wage legislation:
a. sets a price ceiling above the market-clearing price. b. has no impact if the minimum wage is above the market-clearing price. c. has the same impact in all labor markets. d. creates unemployment when the minimum wage is above the equilibrium wage. e. is opposed by organized labor.
It is not possible to exclude people from consuming pure public goods
Indicate whether the statement is true or false