In 2008 and 2009, the budget deficit increased substantially because of
a. the weak economy.
b. extraordinary spending.
c. reduced tax receipts.
d. all of the above
d
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Use the classical (RBC) IS—LM—FE model to show the effects on the economy of a temporary beneficial supply shock; for example, a decrease in the price of oil
You should show the impact on the real wage, employment, output, the real interest rate, consumption, investment, and the price level.
Americans who supported William Jennings Bryan and the "Free Silver" movement:
a. were in support of the gold standard. b. included the US Secretary of the Treasury. c. wanted to increase the U.S. price level. d. wanted free railroad transport of silver from western mines to the east.
A rightward shift of a supply curve
a. represents a decrease in supply b. might be caused by an increase in demand c. might be caused by a price ceiling d. would cause an excess quantity supplied at the previous equilibrium price e. might be caused by a decrease in demand
Suppose favorable weather conditions temporarily raise the marginal productivity of existing capital. Weather conditions are expected to return to normal next year, so there is no change in the expected marginal productivity of future capital. In this situation, the interest rate will
a. rise. b. fall. c. remain unchanged. d. react unpredictably.