In the long run, higher government budget deficits will
A) lead to a redistribution of real GDP from privately produced goods and services to government produced goods and services.
B) lead to a redistribution of real GDP from government produced goods and services to privately produced goods and services.
C) cause the price level to go down on government goods but not on private goods.
D) lead to a reduction in the amount of goods and services produced by the government and private sector.
A
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Recessions begin at ________ and end at ________.
A. a peak; a trough B. the highest unemployment rate; the lowest unemployment rate C. a trough; a peak D. the lowest unemployment rate; the highest unemployment rate
Which of the following is a normative statement?
a. A decrease in price leads to an increase in quantity consumed. b. Incomes grow more rapidly in high-tax states than low-tax states. c. People would be better off if government expenditures were higher. d. People will buy less butter at $1.50 per pound than they will at $1 per pound.
The direct impact on spending of short-term interest rate changes by central banks is:
A. not that powerful. B. only effective for net exports but not for investment and consumption. C. definitely the strongest of all transmission mechanisms. D. only effective for consumption but not investment.
Which of the following best measures the household sector's contribution to the support of the public sector?
A. Government transfer payments. B. GDP minus depreciation. C. Corporate profits taxes plus undistributed corporate profits. D. The difference between personal income and disposable income.