Cyclical deficit (surplus):
What will be an ideal response?
the portion of the deficit (or
surplus) that is caused by fluctuations in the business cycle
You might also like to view...
If the Fed buys government securities, other things the same, the exchange rate ________ and U.S. exports ________
A) falls; decrease B) rises; increase C) falls; increase D) rises; decrease E) falls; do not change because they are autonomous expenditure
Typically, the higher the level of income per person in a country, the higher the level of spending per person on health care. This relationship between income and spending indicates that health care is a
A) inferior good. B) necessity. C) normal good. D) luxury.
If the dollar appreciates, how will aggregate demand in the United States be affected?
A) Aggregate demand will shift to the right as exports increase. B) Aggregate demand will shift to the right as imports increase. C) Aggregate demand will shift to the left as exports increase. D) Aggregate demand will shift to the left as imports increase.
When cross-sections of Americans are asked what the main problem they are dealing with is, the majority will say they don't have:
a. Nearly enough time b. A big enough house c. Enough money d. Meaningful relationships