Suppose initially the federal budget is balanced. The economy then enters a period of expansion. What is likely to happen to the federal budget?
A. It will show a surplus.
B. It will show a deficit.
C. It will remain balanced.
D. It will automatically stabilize.
Answer: A
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Which of the following is NOT an example of private investment expenditure?
A) new houses built during the year B) using credit cards to purchase durable and nondurable goods C) new plants and equipment added during the year D) increases in inventories on goods produced during the year
Producers in perfect competition receive a smaller producer surplus than a monopoly producer
Indicate whether the statement is true or false
A nation's account with the International Monetary Fund denominated in special drawing rights is
A) the quota subscription. B) the account at the World Bank. C) portfolio investment. D) the account at the Fed.
The long-run Phillips curve is vertical
a. True b. False