Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1.
B. P4 and Y2.
C. P5 and Y1.
D. P5 and Y2.
Answer: D
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Arguments against the balanced budget amendment include which of the following?
A) A balanced budget amendment would increase capital formation. B) A balanced budget amendment would exert fiscal discipline on the federal government. C) A balanced budget amendment would limit Congress' ability to use fiscal policy during a recession. D) A balanced budget amendment would reduce the taxation burden on future generations.
Homogeneous goods are ________
A) perfect complements B) perfect substitutes C) similar but not identical D) always inferior
Figure 10.4 Federal Surplus or Deficit as a Percent of GDP
What will be an ideal response?
The unemployment rate is computed as the number of unemployed
a. divided by the labor force, all times 100. b. divided by the number of employed, all times 100. c. divided by the adult population, all times 100. d. times the labor-force participation rate, all times 100.